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MANUAL  OF  ACCOUNTING,  REPORTING 


AND  BUSINESS  PROCEDURE 


11 


CITY  AND  COUNTY  OF  PHILADELPHIA 


JOHN  M.  WALTON 


CITY  CONTROLLER 


EFFECTIVE  JANUARY  1    1914 


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MANUAL  OF  ACCOUNTING,  REPORTING 
AND  BUSINESS   PROCEDURE 


OF    THE 


CITY    AND    COUNTY    OF    PHILADELPHIA 


EFFECTIVE    JANUARY    1,    1914 


ISSUED    BY    THE    CITY    CONTROLLER 

IN    CONFORMITY    WITH 
EXISTING     LAWS    AND    ORDINANCES 


JOHN    M.    WALTON 
CITY    CONTROLLER 


PHILADELPHIA 
DECEMBER   29,   1913 


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DuNLAP  Printing  Company 

PRINTERS  AND  BINDERS 

1316-1829  CHERRY    STREET 

PHILADELPIHA,    PA. 


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FORENVORD 


The  purpose  of  this  manual  is  to  prescribe  a  comprehensive  and  orderly  method  of 
accounting  and  reporting  for  the  city  and  county  of  Philadelphia.  It  is  designed  to  furnish, 
with  respect  to  municipal  business,  the  information  regarded  by  bankers  and  business  men  as 
absolutely  essential  in  the  administration  of  private  business.  It  is  assumed  that  the  inter- 
ests of  citizens  are  analogous  to  those  of  stockholders  of  private  corporations;  that  public 
oflScials  are  trustees;  and  that  the  common  interests  of  trustees  and  stockholders  will  best 
be  promoted  by  a  system  of  accounts  and  reports  which  reflects  accurately  all  the  important 
financial  relations  which  affect  those  interests. 

There  is  nothing  novel  in  the  accounting  system  here  prescribed.  Its  terms  are  in  com- 
mon use  in  the  financial  statements  of  private  enterprises.  Nor  is  it  revolutionary  in  its 
attitude  toward  older  systems  of  governmental  and  municipal  accounting.  Its  function  is 
rather  to  round  out  and  complete  the  older  systems,  which  confined  themselves  almost  exclu- 
sively to  appropriation,  expenditure,  cash  and  debt  statements.  In  prescribing  for  the  city 
and  county  of  Philadelphia  an  accounting  system  showing  assets  and  liabilities,  revenues 
accrued  and  expenses  incurred,  appropriations  and  funds,  my  guiding  purpose  is  to  make 
availalble  to  Councils,  the  Mayor,  the  Controller,  and  to  other  administrative  and  executive 
officers,  current  reports  showing  financial  condition,  operative  results  and  condition  of  funds 
similar  to  those  which  are  commonly  available  to  the  administrative  heads  of  well  managed 
private  enterprises. 

The  activities  of  the  city  and  county  are  diverse,  including  among  its  numerous  func- 
tions farming,  manufacturing,  public  service  enterprises  and  the  operation  of  hospitals  and 
other  institutions.  I  have  had  these  conditions  constantly  in  mind  in  preparing  a  system  of 
accounting  that  would  be  practical  in  every  way  and  that  at  the  same  time  would  be  sufficiently 
comprehensive  to  tell  currently  a  complete  story  of  the  financial  transactions,  work  done, 
and  results  accomplished  in  every  activity  of  the  city  and  county  government. 

JOHN  M.  WALTON, 
City  Controller. 


Ill 

281983 


Excerpt  from  Letter  of  Bankers  relative  to  the  beneficial  effect  upon  the  City's  finances  and 
credit  of  the  asset  and  liability,  revenue  accrued  and  expense  incurred  and  fund  system 
of  accounting  and  reporting: 

"Philadelphia,  January  27,  1912. 

"HON.  JOHN  M.  WALTON, 

"City  Controller,  Philadelphia. 

"Dear  Sir:— 

.  ,  "In  the  interest  of  efficient  management  of  the  business  of  the  City,  we  desire  to  express 
our  approval  of  the  plan  of  accounting  and  reporting  which  is  being  installed  by  yon  as 
shown  in  your  annual  report  and  your  August  statement  of  estimates  •  •  *. 

"Intelligent  direction  of  public  as  well  as  of  private  business  requires  that  all  pertinent 
facts  be  accurately,  systematically,  and  promptly  placed  before  the  responsible  officers,  and 
before  the  public,  whose  support  is  essential  to  the  success  of  a  progressive  administration. 
The  new  forms  of  statements  •  •  •  provide  admirably  for  the  proper  description,  classifica- 
tion, and  reporting  of  the  financial  and  operative  facts  pertaining  to  the  City  government. 
These  furnish  wliat  in  private  business  would  be  regarded  as  the  first  essential  of  economical 
and  eiTRcient  management. 

"Carried  into  a  uniform  budget  for  all  City  Departments,  an  expense  classification  such 
as  that  presented  in  the  revised  estimates  would  enable  citizens  and  taxpayers,  as  well  as 
public  officials,  to  comprehend  readily  the  purpose  of  each  appropriation  item,  and  to  deter- 
mine the  relative  public  importance  of  the  several  activities  of  the  City.  It  would  make  possible, 
furthermore,  the  exercise  of  greater  discretion  on  the  part  of  Councils  in  defining  and  limit- 
ing the  amounts  which  the  various  Departments  may  spend;  on  the  part  of  the  Mayor  in 
approving  or  disapproving  items  in  the  budget;  and  on  the  part  of  the  Controller  in  approv- 
ing or  disapproving  bills  that  come  before  him  for  audit. 

"Very  respectfully, 

(Signed) 

"E.  W.  CLARK,  E.  W.  Clark  &  Co., 
"W.  W.  FRAZIRR,  Philadelphia  Trust  Co., 
"RICHARD  M.  HARTLEY,  Land  Title  Co., 
"ARTHUR  E.  NEWBOLD,  Drexel  &  Co., 
"C.  S.  W.  PACKARD,  The  Pennsylvania  Co., 
"G.  C.  PURVES,  Philadelphia  Savings  Fund, 
"CHAS.  J.  RHOADS,  Girard  Trust  Co." 


IV 


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TABLrE    OF    COINTEINTS 


PAGE 

Foreword   — — — ~ - "^ 

Excerpt  from  letter  of  bankers _ - — iv 

Diagram  showing  general  plan  of  the  asset  and  liability,  revenue  accrued  and  expense 

incurred  and  fund  system  of  accounting  and  reporting „ v 

Diagram  of  accounting  system  and  monthly  general  journal  entries  for  an  operating  de- 
partment or  bureau _ vii 

Table  of  forms - _ _ _ x 

Chapter  I.         General  description  of  asset  and  liability,  revenue  accrued  and  expense  in- 
curred and  fund  system  of  accounting  and  reporting 1 

Chapter  II.       Description  and  use  of  documents 3 

Chapter  III.      Description  and  use  of  registers  and  schedules  of  documents 9 

Chapter  IV.      Description  and  use  of  detail  ledgers  _ 20 

Chapter  V.        Description  and  use  of  general  ledger,  general  journal  and  general  journal 

entries - 30 

Chapter  VI.      Description  and  use  of  monthly  reports  (schedules  of  balances  and  totals) 

from  detail  ledgers  to  be  transmitted  to  department  of  city  controller 40 

Chapter  VII.    Description  and  use  of  summary  reports  from  general  ledger 45 

Chapter  VIII.  Organization  units  and  functions  or  activities  of  tlie  city  and  county 56 

Index - - — - — - - — 63 


IX 


TABLE    OF    FORMS 


The  forms  in  this  table  were  published  in  the  blue  book  of  forms  entitled  "Advance  Sheets 
of  Standard  Departmental  Forms  for  the  Asset  and  Liability,  Revenue,  Expense  and  Fund 
System  of  Accounting  and  Reporting"  December  16,  1912,  and  distributed  to  the  several  de- 
partments and  bureaus,  becoming  effective  January  1,  1913. 

T,        -KT  mm  Paob  nf  Blob 

FOEM  No.  1 ITLE  OF  FOEM  g^^  ^^  p^^^^ 

DO0DMKNT8 

2.        Requisition  on  d<!partment  of  supplies 2 

4.  Contract  order — Original  3 

4-A.    Contract  order — Contractor's  copy 3 

4-B.     Contract  order — Controller's  copy 4 

4-C.     Contract  order — Office  copy  4 

4-D.    Contract  order — Copy  of  advice  to  consignee  5 

4-E.    Contract  order — Consignee's  office  copy .                6 

4-F.    Contract  order — Acknowledgment  by  contractor _ 7 

5.  Contract  voucher 8 

5-A.    Open  market  voucher 9 

5-B.     Payroll  and  miscellaneous  voucher 10 

BEQISTEBS    AND    BOHEOULES   OF   DOCUMENTS 

10.  Register  of  orders __ 12 

10-A.    Schedule  of  orders 12 

11.  Register  of  invoices 13 

11-A.    Schedule  of  invoices 13 

12.  Register  of  vouchers 14 

12-A.    Schedule  of  vouchers 14 

13.  Register  of  reductions  in  contract  reserves 15 

13-A.    Schedule  of  reductions  in  contract  reserves ; 16 

DETAIL,  LEDOEB8 

20.  Appropriation  ledger  (encumbrances) 17 

20-A.    Appropriation  ledger  (expenditures) 17 

21.  Contract  ledger _ 18 

21-A.    Contract  ledger — ^Articles  or  services  sheet 18 

22.  Claimants'  ledger  „. 19 

23.  Stores  ledger  „ _ „ 20 

24.  Report  of  stores  issued - 21 

24-A.    Assembling  sheet  for  report  of  stores  issued 21 

25.  Expense  ledger  (one  account  to  a  page)  __ 22 

25-A.    Expense  ledger  (a  class  of  accounts  to  a  page)  _ —  22 

MONTHLY  BBPOHTS 

30.  Monthly  appropriation  statement 24 

31.  Monthly  contract  statement 24 

32.  Monthly  open  market  order  statement 25 

88.         Monthly  stores  statement ._ „ „ 25 

34.  Monthly  statement  of  expenses  incurred 26 

35.  Monthly  statement  of  permanent  properties  and  equipment 26 


MANUAL  OF  ACCOUNTINQ  AND  REPORTING 


CHAPTER    I 


GENERAL   DESCRIPTION    OF   ASSET   AND  LIABILITY,  REVENUE  ACCRUED  AND 
EXPENSE  INCURRED  AND  FUND  SYSTEM  OF  ACCOUNTING  AND  REPORTING. 

The  object  to  be  attained  by  this  system  of  accounting  and  reporting  is  to  enable  the  city 
controller  and  other  executives  regularly  and  promptly  to  obtain  the  information  needed  for 
the  effective  performance  of  their  duties.  It  simplifies  administrative  methods  and  pro- 
cedure by  placing  the  accounts  and  reports  of  each  department  and  bureau  on  a  uniform  basis. 
The  records  required  consist  of  six  classes,  as  follows: 

1.  Files  of  documents  containing  the  original  evidence  of  each  transaction. 

2.  Registers  and  schedules  for  each  class  of  documents. 

3.  Detail  ledgers  for  keeping  each  general  class  of  accounts. 

4.  General  ledger  containing  summary  accounts. 

5.  Detail  reports — schedules  of  balances  and  totals — from  detail  ledgers. 

6.  Summary  reports— balance  sheets  and  operation   accounts — taken  from   general 

ledger. 

The  accounts  and  reports  are  grouped  or  classified  as  follows : 

1.  Proprietary  accounts. 

a.  General  account — current  assets  and  liabilities,  revenues  and  expenses, 
lb.  Capital  account — ^the  municipal  plant  and  long  term  debt. 
c.  Special  and  trust  accounts — assets  set  aside  and  liabilities  for  special  purposes 
and  beneficiaries. 

2.  Fund  accounts. 

a.  General  fund — appropriations  and  resources  available  to  meet  them. 

b.  Loan  funds — funding  provisions  financed  by  borrowing. 

c.  Special  and  trust  funds — special  appropriations  and  trust  reserves. 

GENERAL  METHOD  OF  OPERATION. 

The  general  method  of  operating  this  system  is  the  same  for  each  department  and  bureau, 
whether  applied  to  expenditures  or  revenues  and  receipts.  The  accounts  as  kept  by  each  of 
the  operating  departments  and  bureaus  show  in  summary  form  as  well  as  in  detail  analysis: 

1.  The  proprietary  relations — that  is  the  assets,  the  liabilities  and  reserves,  and  the 

net  current  assets  as  well  as  net  investment  of  the  city; 

2.  The  operation  results — that  is  the  revenues  accrued,  the  expenses  incurred  and  the 

excess  of  the  one  over  the  other ;  and 

3.  The  funding  relations — that  is  the  authorizations  to  incur  liabilities  and  spend 

money  and  the  character  and  condition  of  the  funded  resources  available  to 
meet  them. 

The  accounts  of  the  department  of  supplies,  as  the  city's  purchasing  agent,  will  be  some- 
what different  from  those  of  the  operating  departments  and  bureaus.  They  will  deal  very 
largely  with  unexpended  balances  of  appropriations  for  supplies  for  all  departments ;  and  with 
contracts,  oi)en  market  orders,  and  other  encumbrances  against  them.  They  will  have  little 
or  nothing  to  do  with  proprietary  accounts,  except  as  dealing  with  its  own  assets,  its  own  lia- 
bilities and  reserves,  revenues  accrued  and  expenses  incurred,  the  same  as  other  departments. 

The  principal  features  of  this  system  of  accounting  and  reporting  are : 


2    ......      ,,  ,GKJ#^BAI,   DESCRIPTION   OP    ACOOUNTINO   SYSTEM. 

1.  Permanent  Record  of  Each  Transaction. 

Each  document  must  contain  such  information  and  must  bear  snch  signatures  and 
verifications  as  will  make  it  an  original  entry  and  the  best  evidence  which  may  be  pro- 
duced to  prove  just  what  each  transaction  was,  and  definitely  to  locate  personal  re^>on- 
sibility  for  each  step  in  the  transaction  from  its  beginning  to  its  consummation. 

Each  file  of  original  documents  will  constitute  a  complete  record  of  all  transactions  of 
the  class. 

2.  Two  Entries  Made  from  Each  Document. 

As  a  means  of  protecting  the  city  against  loss  of  original  evidence,  and  for  the  pur- 
pose of  fulfilling  all  accounting  requirements,  not  less  than  two  entries  are  to  be  made  in 
the  books  of  record  from  each  document.  The  first  entry  is  to  be  made  from  the  original 
document  in  a  register  or  registered  schedule  of  documents  which  serves  as  a  numerical 
index  to  the  original  files,  as  well  as  a  secondary  record  of  all  the  essential  facts  con- 
tained on  the  original  dosument.  Being  classified  according  to  classes  of  documents,  each 
register  will  also  serve  the  same  accounting  purpose  as  a  journal  or  other  book  of  orig- 
inal entry  by  means  of  which  detail  ledger  postings  may  be  proved.  The  second  entry 
will  be  made  from  the  original  document  which  has  been  registered,  or  from  a  copy  or 
schedule  thereof,  in  a  detail  or  subsidiary  ledger  account. 

Both  the  registration  and  the  detail  ledger  entry  thereby  become  original  entries  of 
the  information  contained  in  a  document,  and  as  these  entries  are  made  independently, 
there  is  no  chance  for  copying  an  error  in  registration  or  posting  from  one  book  to  an- 
other. 

In  case  there  may  be  more  than  one  detail  ledger  affected  by  the  transaction,  as  many 
entries  will  be  made  as  there  are  different  detail  or  subsidiary  ledger  accounts  affected. 

For  example,  an  open  market  order  is  entered  as  an  encumbrance  against  a  specified 
account  in  the  appropriation  ledger  and  in  a  specified  account  under  the  name  of  the 
vendor  in  the  claimant's  ledger;  a  contract  order  is  entered  against  a  specified  account 
under  the  name  of  the  contractor  in  the  contract  ledger  but  not  in  the  appropriation 
ledger  for  the  reason  that  the  encumbrance  is  set  up  from  the  original  contrect  at  the 
time   of  its   execution  and   not  from   the  order,  as  is  the  case  with  open  market  orders. 

3.  Control  Over  the  Accuracy  of  Accounts  and  Reports. 

The  totaling  of  the  registers  and  the  posting  of  the  totals  to  a  general  ledger  through 
the  medium  of  a  general  journal,  are  to  be  done  at  the  end  of  each  month,  or  as  often 
as  may  be  found  desirable  to  prove  the  accuracy  of  postings  to  the  detail  or  subsidiary 
ledgers.    The  general  ledgers  accounts,  therefore,  serve  a  double  purpose: 

a.  They  will  furnish  a  complete  summary  of  all  transactions  for  the  period; 

b.  The  trial  balance  of  the  general  ledger  will  give  to  administrative  and  controlling 
officers  balances  or  totals  to  which  the  accuracy  of  all  the  schedules  of  balances 
and  totals  of  the  subsidiary  ledgers  may  be  proved. 

Control  over  the  accuracy  of  the  books  should  therefore  be  complete  with  respect  to  every 
detail  of  the  accounts,  as  well  as  the  mathematical  accuracy  of  every  item  contained  in 
both  the  summary  and  detailed  accounts. 

4.  Uniformity  of  Treatment  to  Similar  Accounts. 

The  required  forms  of  records  give  uniformity  of  treatment  to  similar  accounts  in  each 
of  the  departments,  bureaus  and  offices  of  the  city.  The  documents  and  books  so  far  aa 
l)ossible  are  made  self-explanatory,  the  forms  and  columns  all  bearing  captions  and  in- 
structions the  purpose  of  which  is  to  identify  tlie  forms  and  to  give  certainty  to  the  pro- 
cedure of  those  whose  duty  it  is  to  keep  them. 

The  only  part  of  this  system  which  requires  considerable  knowledge  of  accounting  is 
the  general  journal  and  the  general  ledger — the  instruments  by  means  of  which  control 
over  the  accuracy  and  completeness  of  detail  accounts  and  reports  is  secured.  While  of 
necessity  the  theory  of  these  summary  accounts  must  be  technical  and  exacting  in  order 
to  serve  as  an  instrument  of  precision  in  the  hands  of  the  central  controlling  officer  of 
the  city,  no  doubt  or  question  is  left  for  the  bookkeeper,  as  the  whole  practice  is  charted 
and  each  action  to  be  taken  is  jirescribed. 

The  classification  established  for  the  general  ledger  accounts  has  been  defined  after 
careful  consideration  of  the  question:  What  is  the  most  summary  statement  of  facts 
needed  by  oflTicers  in  the  administration  of  the  city's  businessf  In  establishing  the  classi- 
fication of  detail  accounts,  the  aim  has  been  to  furnish  information  in  any  detail  wliioh 
may  be  desired  about  any  item  in  the  summary  statements  of  account 


CHAPTER    II 

DESCRIPTION  AND  USE  OF  DOCUMENTS. 

By  general  classes,  the  documents  used  will  be  as  follows : 

1.  Requisitions. 

(a)  Requisitions  on  storekeeper. 

(b)  Requisitions  on  central  office  of  department  or  bureau, 
ie)  Requisitions  on  department  of  supplies. 

(d)  Requisitions  on  another  department  or  bureau. 

2.  Orders. 

(a)  Contract  orders. 

(b)  Open  market  orders. 

3.  Invoices. 

(a)  Regularly  rendered  invoices. 

(b)  Memorandum  invoices. 

(c)  Inter-departmentar invoices. 

(d)  Credit  invoices  or  credit  memoranda. 

4.  Expenditure  vouchers. 

(a)  Contract  vouchers. 

(b)  Open  market  order  vouchers. 

(c)  Payroll  and  miscellaneous  vouchers. 

5.  Advices  of  voucher  adjustment. 

1.  Requisitions. 

A  requisition  is  a  request  made  by  an  officer  or  employee  of  the  city  for  services,  supplies 
and  materials,  such  instrument  becoming  an  official  document  when  duly  approved  by  an  au- 
thorized official. 

Requisitions  will  be  of  four  classes,  as  follows: 

(a)  Requisitions  on  storekeeper. 

(b)  Requisitions  on  central  office  of  department  or  bureau. 

(c)  Requisitions  on  department  of  supplies. 

(d)  Requisitions  on  another  department  or  bureau. 

(a)  Requisitions  on  Storekeeper. 

The  form  used  for  "requisitions  on  storekeeper"  is  left  to  the  discretion  of  the  particular 
department.  Tt  must,  however,  contain  sufficient  information  to  enable  the  accounting  division 
to  properly  classify  the  materials  issued,  and  will  be  of  a  distinctive  form  and  color.  Requi- 
sitions on  storekeeper  being  prepared  in  triplicate,  the  original  and  duplicate  are  forwarded 
to  the  storekeeper  through  the  proper  channels,  and  the  triplicate  remains  as  a  permanent 
record  in  the  issuing  office. 

When  properly  approved,  the  original  and  duplicate  requisitions  are  sent  to  the  store- 
keeper and  are  his  authority  to  make  deliveries  requested  thereon.  Deliveries  from  the  store- 
house should  always  be  accompanied  by  the  duplicate  requisition,  which  serves  the  purpose  of 
a  "delivery"  or  "shipping"  ticket  and  bears  the  receipt  of  the  person  to  whom  the  materials 
are  issued.  At  the  time  of  delivery  of  the  goods,  the  storekeeper  notes  the  fact  upon  the 
original  requisition  and  forwards  it  to  the  central  accounting  office  of  the  department  or 
bureau.    The  duplicate  requisition  he  retains  on  file  as  a  storehouse  record. 

No  particular  method  of  numbering  the  requisitions  on  storekeeper  is  prescribed,  this  be- 
ing left  to  the  discretion  of  the  departments. 

(b)  Requisitions  on  Central  Office  of  Department  or  Bureau. 

"When  there  is  need  for  articles  not  kept  by  the  storekeeper,  or  when  the  storekeeper  re- 
quires articles  at  the  storehouse  or  when  services  are  required,  a  requisition  on  the  central 
office  of  the  department  or  bureau  should  be  prepared  in  duplicate ;  the  original  requisition 
being  forwarded  to  the  central  office  of  the  department  or  bureau;  the  duplicate  being  re- 
tained by  the  requisitioner. 

Upon  the  receipt  of  the  original  requisition  in  the  central  office  of  the  department  or 
bureau,  and  as  soon  as  the  necessity  for  the  requisition  has  been   determined,   either   (1)    a 

3 


4  UKSCBIFTIOir    AND   USE   OF   DOCUMENTS. 

requisition  will  be  made  upon  the  department  of  supplies  (c,  described  below)  or  (2)  an  order 
will  be  sent  to  a  vendor  by  the  central  ofiSce  of  the  department  or  bureau,  or  (3)  a  requisition 
on  another  department  or  bureau  (d,  described  below)  will  be  made,  according  to  the  manner 
in  which  the  articles  or  services  are  to  be  obtained. 

A  departmental  order  for  the  purpose  of  filling  a  requisition  on  central  office  should  only 
be  issued  in  special  cases  where  its  issue  will  not  be  in  conflict  with  the  Act  of  Assembly  of 
April  4,  1903,  P.  L.  154,  and  where  there  is  an  unencumbered  balance  of  an  appropriation 
available  in  the  department  or  bureau  issuing  it. 

The  forms  used  for  the  requisition  on  the  central  office  should  be  of  a  distinctive  form 
and  color,  but  should  follow  the  same  general  lines  as  those  issued  upon  the  department  of 
supplies  (form  No.  2).  Minor  changes  in  the  wording  and  which  do  not  change  the  essential 
character  of  the  requisitions  may  be  made  to  suit  the  requirements  of  the  particular  depart- 
ment. The  items  enumerated  must  be  intelligible  so  as  to  admit  of  their  proper  classification 
by  character  of  expenditure  and  by  function  or  activity. 

(c)  Hequisitions  on  Department  of  Supplies. 

Act  of  Assembly  of  April  4,  1903,  P.  L.  154,  provides  that  the  department  of  supplies  shall 
have  the  direction,  control  and  administration  of  the  purchase  and  supply  of  all  articles  of 
personal  property  required  in  the  conduct  of  the  business  of  the  city  and  that  all  departments 
of  the  city  shall  obtain  such  articles  by  requisition  upon  the  department  of  supplies.  By  vir- 
tue of  this  act  the  department  of  supplies  is  designated  the  purchasing  agency  for  the  city  of 
Philadelphia. 

The  requisition  on  the  department  of  supplies  should  be  prepared  in  duplicate  by  means 
of  carbon  paper.  The  original,  when  properly  approved,  serves  as  a  request  made  upon  the 
department  of  supplies  for  the  purchase  of  material  or  other  things  requisitioned  for,  and 
the  duplicate  as  a  file  copy  for  the  department  or  bureau  issuing  the  requisition.  No  partic- 
ular method  of  numbering  the  requisitions  is  prescribed,  this  being  left  to  the  discretion  of  the 
department.  It  is  suggested,  however,  that  each  department  or  bureau  issuing  requisitions  on 
the  department  of  supplies  discontinue  the  present  practice  as  soon  as  the  new  forms  are  avail- 
able, and  number  the  first  requisition  No.  1  and  continue  consecutively.  The  letter  "S" 
immediately  preceding  the  number  will  signify  that  the  requisition  is  on  the  department  of 
supplies. 

(d)  Requisitions  on  Another  Department  or  Bureau. 

"When  the  occasion  arises  for  a  department  or  bureau  to  ask  that  work  be  done  for  it, 
or  that  supplies  and  materials  be  furnished  by  another  department  or  bureau  a  requisition 
on  central  office  should  be  made  out  in  the  regular  form  by  the  person  requiring  the  services 
or  the  material  and  sent  to  the  central  office  of  the  bureau,  which  will  issue  on  the  other  depart- 
ment or  bureau,  from  this  requisition  an  inter-departmental  or  inter-bureau  requisition  upon 
a  form  similar  to  that  used  for  the  requisition  on  the  department  of  supplies. 

2.  Orders. 

As  herein  used  orders  are  of  two  kinds,  namely,  contract  orders  and  open  market 
orders,  (a)  Contract  orders  will  be  understood  to  mean  the  requests  made  by  a  purchasing 
agent  or  other  person  authorized  to  request  the  delivery  of  supplies  and  materials  under  for- 
mally executed  contracts,  the  quality,  quantity,  and  price  of  the  supplies  or  material  being 
governed  by  the  terms  of  the  contract  under  which  the  order  is  issued,  (b)  Open  market 
orders,  as  used  in  this  relation,  will  be  understood  to  mean  all  requests  for  the  delivery  of 
supplies,  materials,  or  the  rendering  of  service  not  formally  contracted  for  by  the  city,  and 
which,  upon  acceptance  and  delivery  by  the  person  receiving  the  same,  constitute  informal 
contracts,  the  quantity,  quality  and  price  being  determined  by  correspondence  and  other  in- 
fonnal  agreements  between  the  agents  of  the  city  and  the  vendor  prior  to  delivery,  or  by 
the  settlement  of  aecounts  stato<l  after  delivery. 

The  two  kinds  of  orders  and  the  copies  thereof  should  be  in  different  colors.  The  several 
copies  are  used  as  follows: 

(1)  Original  order  (Form  4)  to  be  attached  to  the  voucher  transmitted  to  the  controller. 
This  copy  of  the  order  is  to  he  sent  to  the  vendor  with  (2)  and  (3)  described  below 
(Forms  4 A  and  4F),  and  is  to  be  returned  by  him  with  the  delivery  of  the  goods  in  case  it 
is  contemplate<l  that  the  order  shall  be  completed  by  a  single  delivery.  Being  the  original 
order,  an  exact  copy  of  which  is  left  with  the  vendor,  and  being  delivered  by  the  vendor 
or  by  his  agent  to  the  receiver  of  the  goods,  it  becomes,  when  properly  certified  and  re- 
ceipted, the  best  evidence  obtainable  (a)  as  to  the  character  of  the  order  given,  (b)  as 


DESCEIPTION    AND    USE    OF    DOCUMENTS.  O 

to  the  fact  of  delivery,  and  (c)  as  to  the  quantity  and  description  of  goods  for  which 
claim  may  be  entered  by  the  vendor  against  the  city. 

(2)  Copy  to  be  retained  by  vendor  (Form  4  A). 

This  copy  is  for  the  use  of  the  vendor,  and  is  his  evidence  of  the  order  received  from 
the  city.  It  is  also  to  carry  full  instructions  to  the  vendor  as  to  the  department  order- 
ing, the  place  to  which  the  delivery  is  to  be  made,  and  the  quantities,  prices  and  descrip- 
tion of  goods.  The  instructions  contained  on  the  order  are  (a)  that  the  number  of  the 
order  (and  contract,  if  a  contract  order)  is  to  be  indicated  on  invoices;  (b)  that  all 
goods  are  to  be  billed  at  prices  agreed ;  (c)  that  invoices  in  triplicate  form  must  accom- 
pany each  delivery  of  goods,  or  the  goods  will  not  be  received. 

(3)  Acknowledgment  by  vendor  of  the  receipt  of  order  (Form  4F). 

This  copy  will  be  returned  by  the  vendor  to  the  office  from  which  it  was  issued  as 
an  acknowledgment  of  the  receipt  of  order  and  the  date  on  which  delivery  of  the  sup- 
plies ordered  may  be  expected.  Upon  its  return  this  copy  of  order  will  be  used  by  the 
department's  inspectors  to  note  on  the  extended  sheet  the  particulars  of  inspection,  after 
which  it  may  be  attached  to  the  copy  of  invoices  and  other  papers  in  the  case  and  filed. 
If  there  is  doubt  of  the  prompt  return  of  this  copy  of  the  order  by  the  vendor  an  addi- 
tional copy  of  the  order  can  be  made  for  the  use  of  the  inspector  as  described  below 
under  (8). 

(4)  Controller's  copy  (Form  4B). 

This  copy  of  order  must  be  sent  to  the  department  of  city  controller  as  an  advice  of 
the  order  issued  and  to  enable  the  controller  to  establish  the  reserves  and  encumbrances 
set  up  against  appropriation  accounts  for  orders  issued. 

(5)  Office  copy  (Form  4C). 

This  copy  is  to  be  retained  in  the  issuing  office  to  establish  therein  a  complete  file  of 
all  orders  issued. 

(6)  Copy  of  advice  to  consignee  (Form  4D). 

This  copy  is  to  inform  the  one  from  whom  the  requisition  on  the  purchasing  agent 
or  order  clerk  has  been  received  that  the  goods  have  been  ordered ;  to  notify  him  as  to 
the  date  of  the  order,  the  quantity  and  description  of  the  goods,  and  to  instruct  the  re- 
ceiver of  goods :  (a)  that  delivery  must  be  accompanied  by  invoice  in  triplicate  or  goods 
will  not  be  received ;  and  (b)  that  if  at  any  time  it  may  be  necessary  to  use  goods  which 
have  been  delivered  without  invoices,  the  person  receiving  the  goods  must  make  out 
memorandum  invoices  in  triplicate,  and  state  thereon  the  emergency  which  caused  such 
action  to  be  taken.  These  instructions  are  to  be  waived  or  varied  only  in  the_  caseof 
goods  which  are  received  on  orders  that  are  not  to  be  filled  by  a  single  delivery,  in  which 
case  a  different  procedure  is  required.  A  complete  file  of  the  above  form  also  serves 
as  a  receivine  record,  space  for  entering  the  particulars  of  the  receipt  of  goods  being 
provided  on  the  reverse  side  of  each  form. 

This  copy  of  order  is  to  be  held  by  the  consignee  or  receiver  of  the  goods  ordered 
until  order  is  completely  filled  and  goods  delivered,  inspected  and  passed,  when  it  is  to 
be  certified  and  approved  and  if  the  supplies  ordered  were  purchased  through  the  depart- 
ment of  supplies,  transmitted  to  that  department,  together  with  the  original  and  duplicate 
invoice,  the  orisrinal  order  and  the  schedule  of  invoices  sent  to  department  of  supplies.  If 
the  supplies  ordered  were  purchased  direct  or  independently  of  the  department  of  sup- 
plies by  other  departments  or  offices  then  this  copy  of  order  will  of  course  be  retained 
for  permanent  file  in  those  departments  or  offices. 

(7)  Consignee's  office  copy  (Form  4E"). 

This  copy  of  order,  when  issued  by  the  department  of  supplies,  is  to  be  retained  in 
the  central  or  accountinor  office  of  the  department  or  bureau  that  received  the  goods  as 
a  record  of  goods  ordered  through  the  department  of  supplies.  For  such  departments  or 
bureaus  this  copy  mav.  upon  its  receipt  from  the  department  of  supplies,  be  registered 
in  a  memo,  register  of  orders — separate  from  the  register  of  orders  (Form  10)  herein 
described — to  establish  the  encumbrances  against  department  of  supplies  appropriations, 
memorandum  accounts?  of  which  will  be  kept  by  each  department  or  bureau.  In  the 
event,  however,  that  a  department  may  wish  to  set  up  the  encumbrance  against  the  mem- 
orandum appropriations  from  the  requisition  on  the  department  of  supplies  rather  than 
from  the  copy  of  order  received  from  the  latter  department,  the  copy  of  order  may  be 
filed  numerically  thus  making  a  serial  record  or  it  may  be  placed  in  a  temporary  file 
and.  when  invoices  are  received,  taken  from  the  original  file  and  attached  to  the  copies 
of  the  requisition  and  invoice  retained  by  the  department. 


6  OKSORimOM    ANO    USB  Ol'   l>OCUMENT«. 

(8)  Inspector's  office  copy  (Form  4F). 

This  copy  is  sent  to  the  inspector's  office,  department  of  supplies.  By  thia  copy  the  in- 
spectors are  informed  as  to  the  quality  and  quantity  of  the  goods  ordered,  tlie  point  of  de- 
livery and  the  date  upon  which  the  delivery  is  to  be  made.  When  the  goods  have  been 
found  to  meet  the  requirements  of  the  orders,  the  consignee  or  receiver  of  goods  is  notified^ 
the  copy  then  becomes  the  permanent  record  of  the  inspector's  office.  This  copy  is  required 
only  when  order  is  issued  by  department  of  supplies.  The  forms  used  and  the  method  and 
procedure  employed  in  issuing  orders  direct  to  the  contractor  or  vendor  by  the  several 
departments  or  bureaus  should  be  substantially  the  same  as  described  above. 

3.  Invoices. 

In  addition  to  the  classification  of  invoices  which  follows,  it  should  be  noted  that  invoices 
in  the  city  departments  and  bureaus  are  of  either  of  two  general  classes;  namely,  (1)  depart- 
mental invoices  for  goods  tr  services  purchased  by  a  department  or  bureau  upon  its  own  order, 
and  (2)  "supplies"  invoices  for  goods  purchased  upon  order  of  the  department  of  supplies  as 
the  purchasinfj  apont  of  tho.  city. 

(a)  Regularly  rendered  invoices. — An  invoice  will  be  considered  as  a  statement  of  account 
rendered  by  a  person  who  has  furnished  supplies  or  material,  or  who  has  performed  service 
for  the  city  not  as  a  regular  employee,  such  statement  of  account  being  used  as  a  basis  for 
the  settlement  of  claims  for  goods  so  furnished  or  services  so  performed.  Except  under  con- 
ditions described  below  under  the  heading  "memorandum  invoices,"  it  is  necessary  that  in- 
voices shall  be  rendered  to  the  city  at  the  time  supplies  and  materials  are  delivered,  or 
when  services  have  been  performed.  Invoices  for  goods  ordered  by  the  department  of  supplies 
for  the  other  departments  and  bureaus  shall  be  delivered  with  the  goods  to  the  department  or 
bureau  for  which  the  goods  were  purchased. 

Invoices  in  triplicate  are  to  be  required  for  all  purchases  by  the  department  of  supplies 
for  other  departments  and  bureaus;  and  invoices  in  duplicate  for  all  purchases  by  depart- 
ments direct.  If  an  extra  copy  of  an  invoice  ie  needed  by  any  department  or  bureau,  there 
is  no  objection  to  its  being  required  by  the  department  ordering  the  goods.  Any  goods  de- 
livered under  the  circumj^canees  above  described,  without  triplicate  or  duplicate  invoices,  as 
case  may  be,  will  be  held  (if  at  all)  at  the  vendor's  risk;  they  will  not  be  used  or  received 
into  stock  until  invoices  in  triplicate  are  furnished. 

(b)  Memorandum  invoices  are  to  be  used  under  the  following  conditions:  If  at  any 
time  it  may  be  necessary  to  use  goods  which  have  been  delivered  witliout  invoices  in  tripli- 
cate, the  person  receiving  the  goods  must  make  out  memorandum  invoices  and  state  thereon 
the  emergency  which  caused  such  action  to  be  taken. 

Memorandum  invoices  will  be  treated  in  the  same  manner  as  vendor's  invoices  until  the 
vendor's  invoices  shall  have  been  received,  when  the  copies  of  the  vendor's  invoices  will  be 
checked  to  the  corresponding  copies  of  the  memorandum  invoices  and  filed  therewith  u  a 
part  of  the  record. 

Deliverif  slips  in  lieu  of  triplicate  invoices  are  to  be  delivered  with  the  goods  when  mer- 
chandise is  delivered  under  the  following  conditions: 

(1)  When  it  is  contemplated  that  more  than  one  delivery  is  to  be  made  on  account  of  a 

formal  or  an  informal   contract  which  does  not  require  that  orders  be  issued 
against  it ; 

(2)  When  it  is  contemnlated  that  more  than  one  delivery  is  to  be  made  on  a  single 

order  is.sued  against  a  formal  contract; 

(3)  When  it  is  eontemplntod  that  more  than  one  delivery  is  to  be  made  on  a  single  open 

market  order. 
The  receiver  of  the  goods  will  note  the  particulars  of  each  delivery  on  the  back  of  the 
"copy  of  advice  to  consignee"  (Form  4Ti).  and  when  the  final  delivery  is  made  with  the 
copies  of  invoice  and  original  order  accompanving  it,  he  will  copy  on  the  back  of  the  original 
order  the  particulars  of  each  delivery  which  hr  has  previously  noted  on  the  "copy  of  advice 
to  consignee."  Whenever  goods  are  delivered  under  the  circumstances  above  described  it  is 
contemplated  that  the  vendor  shall  leave  with  the  receiver  a  delivery  slip.  In  case  the  vendor 
does  not  leave  a  delivery  slip  with  the  goods  the  receiver  will  provide  a  memorandum  for  the 
deliverymnn  to  siprn  as  evidence  of  the  quantity  of  each  article  delivered.  These  delivery 
slips,  whether  on  the  vendor's  or  receiver's  forms,  will  be  kept  on  file  by  the  receiver  of  goods 
until  the  final  deliverv  upon  an  order  is  received,  when  they  will  be  attached  to  the  original 
copy  of  the  order  (Form  4)  and  forwarded,  together  with  the  "copy  of  advice  to  consitrnee" 
and  the  copies  of  the  invoices  (approved  as  to  quantity  and  quality),  to  the  central  office  of 
the  receiver  of  the  goods.    In  case  of  orders  not  completed  at  the  end  of  the  month,  the  re- 


DESCEIPTION    AND    USE    OF    DOCUMENTS.  ' 

ceiving  clerk  will  list  the  i  eceipted  delivery  slips  on  a  separate  memorandum  for  each  uncom- 
pleted order  and  send  them  to  the  central  office  of  the  department  or  bureau  for  entry  in  the 
register  and  schedule  of  invoices  in  the  month  in  which  the  goods  were  received.  They  will 
be  given  an  invoice  number,  which  number  will  also  be  placed  on  the  invoice  when  it  comes 
through  with  the  final  delivery  of  the  goods.  This  is  done  that  the  delivery  slips  may  be 
identified  on  the  register  and  schedule  of  invoices  with  the  remainder  of  the  invoice  that  is 
registered  in  a  subsequent  month. 

To  the  end  that  the  contractor  or  vendor  may  clearly  understand  how  he  shall  render 
invoices  in  the  cases  described  above,  the  department  of  supplies  (or  other  office  issuing 
orders)  will  stamp  the  following  notation  on  the  contractor's  or  vendor's  copy  of  the  order: 
"Delivery  slip  must  accompany  each  delivery  of  goods,  and  with  the  final  delivery,  in- 
voices in  triplicate  covering  all  deliveries  upon  the  order  must  be  sent  to  the  department  or 
bureau  receiving  the  goods."  The  same  procedure  must  be  followed  in  rendering  invoices  cov- 
ering partial  deliveries  as  has  been  outlined  above  under  the  heading  "Regularly  rendered 
invoices."  That  is,  they  must  in  all  cases  accompany  the  final  delivery  of  goods  to  the  con- 
signee, and  upon  approval  of  the  goods  as  to  quantity  and  quality  by  the  proper  person,  be 
forwarded  to  the  central  office  of  the  department  or  bureau  for  entry  upon  the  register  and 
schedule  of  invoices  (see  page  11).  If  the  goods  have  been  ordered  by  the  department  of 
supplies,  however,  the  "Supplies  invoices"  are  later  entered  upon  the  register  and  schedule 
of  invoices  sent  to  the  department  of  supplies,  preparatory  to  being  forwarded  to  that  de- 
partment (see  page  14). 

It  should  be  borne  in  mind,  however,  that  this  procedure  for  invoices  is  confined  solely  to 
those  exceptional  cases  where  it  may  be  necessary  to  deliver  goods  ordered  without  invoices 
in  triplicate  accompanying  the  delivery. 

If  it  is  found  that  there  are  any  conditions  in  connection  with  the  delivery  of  goods  and 
the  rendering  of  invoices  that  are  not  provided  for  by  the  foregoing  procedure,  rules  cover- 
ing the  same,  in  conformity  with  the  general  method  of  operation  herein  described,  may 
be  formulated  as  they  arise. 

Wherever  in  the  procedure  outlined  above  the  department  of  supplies  is  named,  the  same 
procedure  with  slight  modifications  to  suit  local  conditions  will  be  followed  by  all  other  de- 
partments and  offices.  The  department  of  supplies  is  named  specifically  because  that  depart- 
ment is  the  purchasing  department  or  agent  for  all  city  departments,  bureaus  and  offices. 

(c)  Inter-departmental  invoices. — An  inter-departmental  invoice  is  an  invoice  rendered 
by  one  department  or  bureau  to  another  for  services  rendered  or  materials,  supplies  or  equip- 
ment delivered,  or  for  the  transfer  of  custodianship  of  land,  structures  and  non-structural 
improvements.  In  the  case  of  inter-departmental  transfer  all  services,  materials  or  property 
are  to  be  billed  at  cost  (or  book)  value. 

In  the  case  of  services  the  journal  entry  representing  the  cost  value  of  services  fur- 
nished another  department  or  bureau  will  be  charged  to  inter-departmental  services,  etc., 
through  the  medium  of  the  register  of  invoices  and  payrolls.  Materials,  supplies  and  equip- 
ment purchased  for  another  department  or  bureau  where  such  fact  is  known  at  time  of 
purchase  will  similarly  be  charged  to  inter-departmental  services,  etc.,  through  the  medium 
of  the  register  of  invoices  and  payrolls. 

Materials,  supplies  and  equipment  issued  from  the  storehouse  of  a  department  or  bureau 
for  the  benefit  of  another  department  or  bureau  will  be  charged  to  inter-departmental  ser- 
vices, etc.,  through  the  medium  of  the  monthly  report  of  stores  issued. 

Equipment  that  is  in  use  by  a  department  or  bureau  and  not  in  stores  at  the  time  of  its 
transfer  to  another  department  or  bureau,  and  land,  structures,  non-structural  improvements, 
accounts  receivable,  choses  in  action,  or  any  other  asset  whatsoever  not  mentioned  above,  the 
custodianship  of  which  is  transferred  to  other  departments  or  bureaus,  must  be  registered  in 
the  register  of  property  and  equipment,  etc.,  transferred ;  the  description  of  which  appears 
later.  Through  the  medium  of  this  register  monthly  totals  of  the  cost  (or  book)  value  of 
property  that  has  been  in  the  custody  of  a  department,  and  which  is  transferred,  are  secured, 
and  inter-departmental  services,  etc.,  is  charged,  and  land,  structures,  non-structural  improve- 
ments and  equipment  or  other  asset  accounts — as  the  case  may  be — is  relieved  or  credited 
therewith. 

The  inter-departmental  invoices  should  describe  and  give  the  cost  (or  book)  value  of  the 
property  transferred,  and  should  bo  prepared  in  triplicate.  The  original  and  first  copy  (du- 
plicate) should  be  sent  to  the  receiving  departments,  and  with  the  goods  if  possible.  The 
second  copy  (triplicate)  should  be  retained  by  the  department  furnishing  the  goods.  The  first 
copy  should  be  receipted  by  the  department  receiving  the  goods  and  returned  by  it  to  the 
department  furnishing  the  good?  ft?  evidence  that  the  goods  as  issued  have  been  received. 


8  DESORIPTIOW    AWI)   L'SE   OF   DOOtTUSKTS. 

(d)  Credit  invoices  or  credit  memoranda  are  issued  where  there  are  allowances  or 
reductions  made  on  an  invoice  in  favor  of  the  city,  usually  on  account  of  goods  return  ;d  to 
the  vendor.  When  such  invoices  are  received,  they  will  be  entered  in  the  registry  of  invoices 
in  red  ink  as  a  credit.  If  an  invoice  has  been  vouchered  prior  to  the  goods  being  returned 
to  the  vendor,  the  adjustment  would  be  made  in  the  voacher  register  instead  of  in  the  invoice 
register. 

Whenever  it  is  not  practicable  to  issue  orders  covering  petty  expenditures  the  invoices  cot- 
ering  such  expenditures  should  have  noted  on  them  the  words  ' '  No  order. ' ' 

4.  Expenditure  voucher  as  liprcin  used  is  a  document  prepared  by  a  department  or 
bureau,  containing  a  statement  of  an  amount  due  by  the  city,  approved  by  the  proper  head 
of  the  department  or  bureau,  such  statement  being  accompanied  by  the  evidence  of  the  pro- 
priety and  justice  of  the  claim  certified  to  by  persons  having  direct  knowledge  thereof. 

There  are  three  classes  of  expenditure  vouchers,  namely  those  chargeable  to  (1)  general 
fund  appropriations;  those  chargeable  to  (2)  loan  fund  appropriations,  and  those  chargeable 
to  (3)  special  and  trust  fund  appropriations.  Each  of  these  three  main  classes  of  expendi- 
ture vouchers  is  sub-divided  as  follows : 

(a)  Contract  vouchers  (Form  5)  printed  on  blue  paper. 

(b)  Open  market  vouchers  (Form  5  A)  printed  on  yellow  paper. 

(c)  Payroll  and  miscellaneous  vouchers  (Form  5  B)  printed  on  white  paper. 

The  first  named,  (a)  contract  voucher,  is  used  to  cover  payments  applying  to  duly  exe- 
cuted contracts;  (b)  open  market  vouchers  cover  open  market  orders,  and  (c)  payroll  and 
miscellaneous  vouchers  cover  all  payrolls  and  incidental  expenses  for  which  no  contract  has 
been  executed  or  open  market  order  issued. 

The  several  classes  of  vouchers  are  of  the  same  size  and  form,  and  furnish  the  same  gen- 
eral information  to  the  city  controller. 

If  possible,  no  voucher  should  be  drawn  for  an  amount  less  than  one  dollar. 

Approval  of  all  claims  against  the  city  for  audit  and  payment  shall  be  on  expenditure 
vouchers,  certified  by  the  head  of  the  department  in  which  the  claims  originate.  Particulars 
of  the  claim  will  be  entered  on  the  inside  of  the  voucher,  giving  the  item,  date,  recapitula- 
tion by  object  of  expenditure,  and,  if  there  are  several  items  chargeable  to  one  account,  they 
will  be  entered  in  the  column  headed  "amount."  The  total  of  the  items  will  be  extended  in 
the  last  column,  and  if  more  than  one  account  Is  covered  by  the  voucher,  the  last  column  will 
be  totaled  and  this  total  will  be  the  amount  of  the  voucher. 

On  the  reverse  side  of  the  voucher  (Forms  5,  5  A  and  5B),  the  departments  will  enter 
the  number  of  voucher  and  warrant,  estimate  number  if  a  contract  voucher,  and  open  market 
order  number  if  an  open  market  voucher,  and  the  general  or  loan  ftmd  appropriation  item 
numbers  and  amounts.  The  name  of  the  payee,  the  nature  of  the  voucher  and  the  total  amount 
thereof  will  also  be  shown  in  the  spaces  provided  therefor.  Under  the  heading  "Charac- 
ter of  expenditure"  and  "Amount"  will  be  entered  the  distribution  of  the  voucher  amount 
in  accordance  with  the  classification  of  expenditure  detailed  thereunder.  The  total  of  the 
amount  column  will  be  the  total  amount  of  the  voucher  as  distributed.  Space  is  provided 
likewise  for  the  approval  of  the  voucher  by  the  bureau  chief  and  the  director  of  the  de- 
partment in  which  the  voucher  emanated,  and  for  the  acknowledgment  of  the  receipt  of  the 
warrant  by  the  payee. 

5.  Advices  of  Voucher  Adjustment.  .  . 

When  an  adjustment  between  the  amount  of  a  warrant  and  the  amount  of  a  voucher, 
or  any  adjustment  in  the  amount  of  a  voucher,  is  necessary  in  the  division  of  audit  of  expen- 
ditures in  the  department  of  city  controller,  there  will  be  prepared  and  forwarded  to  the 
department  or  bureau  in  which  the  voucher  originated  an  ad^ice  showing  the  dat«  and  num- 
ber of  the  warrant  and  voucher,  number  of  the  contract  (if  on  a  contract  voucher),  name  of 
the  claimant,  original  amount  of  the  claim,  amount  of  adjustment,  and  nature  of  ad; 
This  advice  will  serve  as  a  basis  for  adjustment  entries  in  the  proper  departmental  <>•  > 

records,  for  the  adjustment  of  the  voucher  and  the  drawing  of  a  new  warrant,  and  as  a  per- 
manent record  in  the  files  of  the  department  or  bureau  concerned. 

Duplicate  copies  of  the  advice  of  voucher  adjustment  are  to  be  sent  to  the  department  of 
supplies  for  changos  in  the  amount  of  a  warrant  and  voucher  prepared  by  that  department 
The  duplicate  copy  will,  upon  approval,  be  sent  by  the  department  of  supplies  to  the  particu- 
lar department  or  bureau,  whose  accounts  are  affected  by  the  adjustment.  In  this  way  the 
city  controller's  accounts  will  be  kept  in  constant  adjustment  with  the  accounts  of  the  oper- 
ating departments  and  bureaus  and  the  department  of  supplies. 


CHAPTBR    III 

DESCRIPTION  AND  USE  OF  REGISTERS  AND  SCHEDULES  OP  DOCUMENTS. 

By  general  classes,  the  registers  and  schedules  of  documents  used  will  be  as  follows : 

1.  Register  and  Schedule  of  Contracts. 

2.  Register  and  Schedule  of  Orders — Contract  and  Open  Market. 

3.  Register  and  Schedule  of  Invoices  and  Payrolls. 

4.  Register  and  Schedule  of  Invoices  sent  to  Department  of  Supplies. 

5.  Register  and  Schedule  of  Vouchers  sent  to  City  Controller. 

6.  Register  and  Schedule  of  Reductions  in  Contract  Reserves. 

7.  Register  and  Schedule  of  Properties,  etc.,  transferred  or  otherwise  disposed  of. 

8.  Register  and  Schedule  of  Inter-Departmental  Services,  etc.,  received. 

9.  Monthly  Report  of  Stores  Issued  from  Storehouse. 

10.  Monthly  Report  of  Stores  Returned  to  Storehouse. 

11.  Register  and  Schedule  of  Reserves  for  Repairs  and  Capital  Depreciation. 

12.  Register  and  Schedule  of  Revenue  Accrual. 

Where  it  is  not  specifically  stated  in  connection  with  the  description  of  each  register 
and  schedule,  it  is  understood  that  a  schedule  is  prepared  hy  means  of  carbon  paper  at  the 
time  each  register  sheet  is  written.  The  schedules  in  all  cases  must  be  promptly  transmitted 
to  the  city  controller. 

By  reason  of  the  infrequeney  of  special  and  trust  transactions,  separate  columns  have  not 
been  provided  in  the  several  registers  for  entries  of  this  character.  When  transactions  of 
this  kind  occur,  entry  thereof  should  be  made  in  the  "general  account"  or  "general  fund" 
column  and  the  amount  designated  by  a  symbol  in  order  that  separate  totals  for  ' '  general  ac- 
count" or  "general  fund"  and  "special  and  trust  accounts"  or  "special  and  trust  funds" 
may  be  secured  for  journal  entry  purposes. 

The  special  and  trust  transactions  have  been  omitted  from  the  journal  entries  of  this  chap- 
ter and  of  chapter  V,  as  they  will  not  occur  in  a  number  of  the  departments  or  bureaus. 
Where  they  do  occur,  the  journal  entries  here  given  may  be  readily  expanded  to  include 
special  and  trust  transactions  owing  to  the  journal  entries  therefor  being  similar  to  those  of 
the  general  account  and  capital  account  and  those  of  the  general  fund  and  loan  funds. 

In  this  chapter  and  chapter  V  the  words  "safety"  and  "supplies"  have  been  used  in 
journal  entries  to  distinguish  between  appropriations,  and  transactions  incident  thereto,  made 
to  an  operating  department  or  bureau  direct  and  those  made  to  the  department  of  supplies 
for  the  use  of  an  operating  department  or  bureau.  The  word  "safety"  as  the  short  de- 
partmental title  of  the  department  of  public  safety  is  used  for  illustrative  purposes.  In 
practice,  the  short  title  of  the  particular  department  or  bureau  for  which  the  general  jour- 
nal entries  are  formulated  would  be  substituted, 

1.  Register  and  Schedule  of  Contracts. 

The  purpose  of  a  register  of  contracts  is  to  provide  a  chronological  record  of  this  class  of 
documents,  as  well  as  monthly  totals  for  the  general  journal. 

No  regular  form  of  register  and  schedule  of  contracts  is  provided  in  the  book  of  forms 
and  in  a  number  of  departments  and  bureaus  where  the  contracts  entered  into  are  few  in 
number,  they  can  be  readily  summarized  and  totals  for  the  month  secured  without  the  use  of 
any  special  record.  Even  in  the  departments  and  bureaus  where  few  contracts  are  entered 
into,  however,  a  register  will  be  found  of  value  which  shows  the  date  of  execution  of  the 
contract,  name  of  the  contractor,  the  purpose  of  the  contract  and  the  amount  of  the  contract, 
divided  as  to  general  fund,  loan  funds  or  special  and  trust  funds. 

The  register  and  schedule  should  be  totaled  at  the  end  of  each  month,  a  separate  total 
being  made  for  general  fund,  for  loan  funds  and  for  special  and  trust  funds.  If  a  loose  leaf 
register  is  used,  the  schedule  for  transmission  to  the  city  controller  may  be  made  by  carbon 
process. 

In  the  department  of  supplies,  two  copies  of  the  schedule  of  contracts  in  addition  to 
the  register  of  contracts  will  be  required,  the  second  copy  being  sent  to  the  department  or 
bureau  for  whose  benefit  goods  or  services  are  being  contracted.  The  purpose  of  thus  noti- 
fying the  operating  department  is  to  enable  it  to  encumber  the  memorandum  appropriation 
accounts  that  it  keeps  with  the  appropriations  made  to  the  department  of  supplies  for  its 
use. 

9 


10  DX80BIPTIOI7    AND    U8K    OF    BEOISTKiUI    AND    8CHRDULE8    OF   DOOUMEHTB. 

The  totaJs  by  funds  of  contracts  entered  into  form  the  bans  of  a  general  journal  entry, 
as  follows : 

Unencumbered  Balance  of  Appropriations — Safety — General  Fund. 
Unencumbered  Balance  of  Appropriatbns — Supplies — General  Fund. 
Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds. 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds. 
To  Reserve  for  Contracts — Safety — General  Fund. 

Reserve  for  Contracts — Supplies — General  Fund. 

Reserve  for  Contracts — Safety — Loan  Funds. 

Reserve  for  Contracts — Supplies^ — Loan  Funds, 

2.  Begister  and  Schedule  of  Orders — Contract  and  Open  Market. 

The  purpose  of  the  register  of  orders  (Form  10)  is  twofold:  (1)  to  provide  a  complete 
record  and  numerical  index  to  files  of  orders  issued ;  (2)  to  establish  totals  of  estimateid  or 
actual  amounts  by  means  of  which  the  accuracy  of  postings  to  reserves  set  up  against  appro- 
priation accounts,  as  well  as  the  postings  of  orders  to  the  contract  ledger  and  the  claimant's 
ledger,  may  be  proved.  Orders  should  be  entered  chronologically,  one  line  for  each  order,  un- 
der one  series  of  order  numbers,  beginning  with  number  1  at  the  first  of  the  year  or  with  any 
other  number  if  it  is  desired  to  continue  a  series  already  begun. 

It  is  recommended  that  a  loose  leaf  form  of  register  be  used  so  that  the  register  and  a 
schedule  may  be  made  at  one  writing  by  means  of  a  carbon  sheet.  A  schedule  of  orders 
must  be  transmitted  to  the  department  of  city  controller  as  soon  as  enough  orders  have  been 
issued  to  fill  or  nearly  fill  a  schedule,  but  not  less  often  than  twice  a  month. 

Departments  which  purchase  their  supplies  through  the  department  of  supplies  will  not 
use  this  register  of  orders  (Form  10)  to  register  the  copies  of  orders  issued  by  the  latter  de- 
partment. The  department  of  supplies  will  register  and  schedule  to  the  controller  all  orders 
issued  for  supplies  whether  for  its  own  use  or  for  the  use  of  other  departments.  The  copy 
of  order  sent  to  departments  as  an  advice  of  the  issue  of  an  order  by  the  department  of  sup- 
plies will  be  registered  by  each  department  in  a  separate  register  kept  for  that  class  of  orders. 
The  use  of  this  register  will  be  exactly  similar  to  that  of  the  register  of  orders  (Form  10)  de- 
scribed above  with  the  exception  that  no  schedule  of  the  entries  therein  will  be  transmitted  to 
the  city  controller,  and  the  postings  made  therefrom  will  be  only  to  memorandum  appropria- 
tions accounts  (department  of  supplies  appropriations). 

As  the  columnar  arrangement  of  tlie  register  of  an  operating  department  or  bureau  for 
departjnont  of  supplies  orders  will  be  the  same  as  the  register  (Form  10)  designed  for  orders 
issued  direct  by  departments,  the  loose  sheets  of  the  latter  may  be  used  for  both  purposes  and 
kept  in  separate  binders  or  in  one  binder  separated  with  a  tab  or  guide  sheet. 

If  a  department  feels  that  the  time  elapsing  between  the  issue  of  a  requisition  on  the  de- 
partment of  supplies  and  the  receipt  of  the  copy  of  order  therefrom  is  too  long  to  delay  en- 
cumbering the  memorandum  appropriation  accounts  the  requisition  rather  than  the  order 
may  be  used  for  this  purpose.  It  must  be  pointed  out,  however,  that  if  requisitions  instead 
of  orders  are  used  to  encumber  department  of  supplies  appropriations  the  result.s  in  many 
cases  will  not  be  ns  satisfactory  aa  if  orders  were  used.  For  example,  requisitions  for  supplies 
not  on  contract  at  the  time  of  issuing  the  requisition  will  have  to  be  held  open  or  posted  to 
some  suspense  account,  because  the  department  issuing  the  requisition  will  not  know  at  the 
time  whether  the  supplies  req\ieste<l  are  to  be  purchased  on  contract  or  open  market  order. 
This  information  is  necessary  to  determine  whether  the  charge  should  be  made  to  the  appro- 
l>riation  ledger  as  a  contract  or  as  an  open  market  order  encumbrance,  and  also  whether  the 
charge  should  be  made  to  a  new  account  in  the  contract  ledger  or  to  some  account  in  the 
claimant's  ledger  as  an  open  market  order.  The  price  at  which  to  estimate  the  amount  of  the 
order  will,  likewise,  be  unknown  at  the  time  the  requisition  is  issued.  But  an  estimate  must 
be  made  of  the  amount  of  each  requisition  if  it  is  to  be  set  np  at  onee  as  an  encumbrance 
against  some  appropriation,  and  this  estimated  amount  may  be  subject  to  great  fluctuations 
from  the  amount  of  the  order  as  issued  by  the  department  of  siipplies. 

Considering  these  difficulties  it  would  seem  more  satisfactory  to  a  department  tense  only 
the  copy  of  order  from  the  department  of  supplies  when  setting  iip  the  encumbrance  for 
orders  issued.  As  requisitions  are  issued  on  the  department  of  supplies  a  copy  thereof  conld 
be  plaee<l  in  a  binder,  and  when  a  copy  of  the  order  Is  received  from  the  purchasing  depart- 
ment the  copy  of  requisition  could  be  taken  from  the  binder  and  attached  to  the  order,  which 
latter  would  be  registered  and  placed  in  a  temporary  file  pending  the  receipt  of  the  goods  or- 
dered.   The  order  would  thus  become  the  encumbrance  against  the  particular  appropriation 


DESCHIPTION    AND    USE    OF    EEGISTEES    AND    SCHEDULES    OF   DOCUMENTS.  H 

account  affected.  If,  pending  the  receipt  of  the  copy  of  order  from  the  department  of  sup- 
plies, it  is  desired  to  know  the  available  balance  in  an  appropriation  for  further  orders, 
there  could  be  deducted  from  the  unencumbered  balance  as  shown  by  the  appropriation  led- 
ger the  estimated  amount  of  the  requisitions  cliargeable  to  that  particular  appropriation 
pending  in  the  requisition  binder.  To  facilitate  ready  reference  to  this  binder  it  could  be 
divided  into  as  many  sections  as  there  are  department  of  supplies  appropriation  items,  and 
the  sections  indicated  by  division  sheets  with  tabs.  In  this  way  a  department  would  know  at 
all  times  the  state  of  its  fund  accounts  with  the  department  of  supplies,  and  it  would  be 
much  easier  to  maintain  a  constant  balance  between  the  latter  department  and  other  depart- 
ments and  bureaus. 

The  order  numbers  will  be  serially  entered  in  the  first  column  to  the  left.  The  number 
of  the  requisition  on  which  the  order  is  based  will  appear  in  the  second  column,  with  the  day 
of  the  month  in  which  the  order  is  issued  appearing  in  the  third  column.  The  name  of  ven- 
dor and  the  purpose  for  which  the  order  was  issued,  being  a  brief  description  of  the  articles 
or  services  required,  will  appear  in  the  next  two  columns  respectively,  with  another  column 
headed  "Memo"  in  which  may  be  noted  any  further  information  relating  to  the  orders.  In  the 
column  headed  "General,  Loan  or  Special  and  Trust  Item  No."  Avill  be  entered  the  number  of 
the  appropriation  item  from  which  the  order  is  payable. 

In  the  next  four  columns  under  the  main  heading  "Estimated  or  Actual  Cost"  will  be  en- 
tered the  estimated  cost  of  the  order  or  the  actual  cost  if  that  is  known  in  advance.  If  the 
order  is  drawn  against  a  contract  chargeable  to  a  general  fund  appropriation  account  it  will 
be  entered  in  the  column  headed  "Contract"  under  "General  Fund;"  if  chargeable  to  a  loan 
fund  account  it  will  be  entered  in  the  column  headed  "Contract"  under  "Loan  Fund."  If  It 
is  an  open  market  order  it  Avill  be  entered  in  the  column  headed  "Open  Market"  under  "Gen- 
eral Fund"  or  "Loan  Fund,"  according  to  the  fund  to  which  it  is  chargeable.  In  the  column 
headed  "Goods  Inspected"  will  be  noted  the  fact  of  inspection  of  the  goods  delivered  on  the 
order.  Vouchers  transmitted  to  the  controller  in  settlement  of  claims  based  on  orders  filled 
or  completed  will  be  indicated  in  the  last  two  columns  of  the  register  of  orders. 

At  the  end  of  a  month,  after  all  orders  issued  during  the  month  and  chargeable  in  the 
month  are  entered,  the  register  of  orders  will  be  totaled  in  all  of  the  columns  and  the  totals 
entered  in  ink.  j 

For  the  present  no  posting  of  contract  orders  issued  will  be  made  to  the  detail  fund 
ledgers,  nor  will  the  totals  thereof  be  journalized  for  posting  to  the  general  ledger.  It  is 
not  thought  expedient  at  tliis  time  to  set  up  in  the  general  ledger  any  account  for  "Reserve 
for  Contract  Orders."  Instead  of  encumbering  the  "Reserve  for  Contracts"  account  with  the 
estimated  or  actual  amount  of  contract  orders  issued,  as  shown  in  the  register  of  orders,  this 
account  will  be  debited  with  the  actual  amount  of  contract  vouchers  settled  each  month  as 
shown  in  the  register  of  vouchers,  the  operation  of  which  is  explained  in  detail  on  page  16. 

From  the  register  of  orders,  therefore,  the  following  journal  entry  only  will  be  made,  to 
be  entered  in  the  general  journal  and  posted  to  controlling  accounts  in  the  general  ledger  at 
the  close  of  each  month : 

Unencumbered  Balance  of  Appropriations — Safety — General  Fund. 
Unencumbered  Balance  of  Appropriations — Supplies — General  Fund. 
Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds. 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds. 

To  Reserve  for  Open  Market  Orders — Safety — General  Fund  (column  9). 
Reserve  for  Open  Market  Orders — Supplies — General  Fund  (column  9). 
Reserve  for  Open  Market  Orders— Safety — Loan  Funds  (column  11). 
Reserve  for  Open  IMarket  Orders — Supplies— Loan  Funds  (column  11). 

3.  Register  and  Schedule  of  Invoices  and  Payrolls. 

The  purposes  of  the  register  of  invoices  and  payrolls  (Form  11)  are: 

1.  To  provide  a  complete  record  and  index  to  files  of  invoices  and  payrolls ;  and 

2.  To  establish  totals  for  monthly  journal  entries  to  the  general  ledger  which  con- 

tains controlling  accounts  by  means  of  which  the  accuracy  may  be  proved  of 
the  postings  of  invoices,  and  payrolls   to   the   detail   ledgers   of   "Expense," 
"Property"  (capital  outlay),  "Work  in  Progress"  (jobs)  and  "Stores." 
In  addition  to  invoices  received  from  vendors,  and  payrolls,  all  other  miscellaneous  liabilities 
as  incurred  should  be  entered  upon  the  register  and  schedule  of  invoices  and  payrolls. 

There  are  two  registers  of  invoices— one  for   the   invoices   covering  material   purchased 


12  DBSOBIPTION    AND   USX   OF   BEOISTEB8    AND   80HEDUI.B8   OF  DOOCMKST8. 

directly  by  a  departmeut  or  bureau  and  called  iuvoices  ".Safety"  or  "Works"  or  "lle&ltb  and 
Charities, "  or  other  short  departmental  title  according  to  the  name  of  the  department,  and 
the  other  for  invoices  covering  material  parchased  for  a  department  or  bureau  by  the  de- 
partment of  supplies  which  are  called  "Supplies"  invoices. 

As  soon  as  there  are  enough  invoices  on  hand  as  nearly  to  fill  a  register  sheet  and  not  leas 
frequently  than  twice  a  month  in  larger  bureaus  and  once  a  month  in  the  departments  and 
bureaus  having  very  few  invoices,  a  schedule  of  invoices  (Form  11  A)  shall  be  prepared  and 
sent  to  the  city  controller's  office.  This  schedule  must  show  all  the  entries  on  the  register 
of  invoices  at  the  time  the  schedule  is  transmitted.  The  forms  are  so  designed  that  the  sched- 
ule may  be  a  carbon  copy  of  the  register.  "Supplies"  invoices  must  be  registered  and  sched- 
uled separately,  but  in  the  same  manner  as  departmental  invoices  by  the  department 
receiving  the  goods  and  the  schedules  transmitted  to  the  city  controller's  office  in  the  same 
manner  as  the  schedules  of  departmental  invoices. 

It  will  only  be  necessary  for  the  department  of  supplies  to  register  and  schedule  the  in- 
voices for  goods  delivered  to  it  for  its  own  use  and  for  its  own  payrolls  and  miscellaneoos 
liabilities  incurred. 

Commencing  with  the  first  of  the  year  a  series  of  schedule  numbers  will  be  started  be- 
ginning with  No.  1  for  the  departmental  schedules,  and  No.  1  S  for  the  "Supplies"  schedules. 
This  schedule  number  will  be  noted  on  the  register  as  well  as  on  the  schedule.  The  date 
of  transmission  of  the  schedule  will  also  be  noted  upon  the  register;  both  of  these  notations 
being  made  in  the  space  in  the  upper  left-hand  corner,  provided  for  the  purpose.  The  date 
of  the  schedule  should  be  the  same  as  the  date  of  transmission  to  be  written  on  the  register, 
and  in  the  event  of  schedules  being  transmitted  once  a  month  they  should  bear  the  date  of 
the  last  day  of  the  month. 

The  register  of  invoices  lays  the  foundation  for  a  proper  separation  of  expenditures  by 
months.  To  this  end  the  invoice  for  an  expense  incurred  in  December  ought  to  be  entered 
upon  the  December  and  not  the  January  or  a  subsequent  register.  The  latter  event  would  not 
occur  if  invoices  were  at  all  times  delivered  with  the  goods  and  promptly  prepared  for  regis- 
tering. Upon  the  handling  of  invoices  in  the  same  accounting  month  in  which  the  expense  « 
incurred  depends  the  value  of  comparisons  between  month  and  mx>nth,  year  and  year.  Every 
effort  should  be  made  to  have  all  invoices  for  goods  delivered  in  December,  for  instance,  reg- 
istered on  the  December  register.  For  such  large  charges  as  the  monthly  lighting  bills,  etc., 
it  is  essential  that  the  register  for  a  given  month  be  kept  open  until  the  bills  for  that  month 
can  be  entered.  The  bookkeeper  will  have  to  exercise  some  judgment,  however,  as  to 
how  long  he  can  afford  to  keep  registers  open,  in  order  to  get  in  delinquent  invoices,  before 
he  closes  his  register  of  invoices  for  the  month ;  but  in  doing  so  he  shoiild  bear  constantly  in 
mind  the  comparisons  which  are  to  be  made  of  monthly  expenses  and  monthly  acquisitions 
of  property  as  will  be  shown  by  the  reports  drawn  from  his  detail  ledgers. 

The  procedure  to  follow  in  registering  invoices  is  first,  to  post  in  the  column  No.  1  the 
number  given  by  the  bookkeeper  to  the  invoice,  then  in  column  No.  4  headed  "Registra- 
tion," the  date  upon  which  the  invoice  was  actually  entered  in  the  register,  in  column  No.  5 
the  date  of  the  invoice  itself,  and  in  column  No.  6  the  date  of  the  delivery  of  the  goods  if  such 
date  differs  from  that  of  the  invoice. 

Column  No.  7  is  for  the  number  of  the  order  which  the  invoice  covers  (either  partly  or 
completely).  Under  "Claimant"  will  be  entered  the  name  of  the  claimant  from  whom  the 
purchase  is  made.  At  the  right-hand  end  of  the  line  note  the  number  of  the  appropriation 
item  to  which  the  invoice  is  to  be  charged  when  it  is  vouchered.  If  the  invoice  is  charge- 
able to  a  general  fund  appropriation  the  amount  will  be  entered  in  the  column  headed  "Gen- 
eral Account;"  if  chargeable  to  a  loan  fund  appropriation  it  will  be  entered  in  the  column 
headed  "Capital  Account;"  if  chargeable  to  a  special  and  trust  fund  appropriation  it  will  be 
entered  in  the  column  headed  "General  Account"  and  indicated  with  the  Special  and  Trust 
Account  symbol  in  order  that  separate  totals  for  the  General  Account  and  Special  and  Trust 
Accounts  may  be  secured.  This  information  is  derived  from  the  appropriation  item  number 
which  the  invoice  bears. 

The  five  columns  under  "Distribution"  are  provided  to  indicate  the  nature  of  the  expen- 
diture accounts  to  which  the  invoices  and  payrolls  are  chargeable.  All  invoices  chargeable 
strictly  to  "Expense"  and  bearing  an  expense  symbol  or  name  should  be  entered  in  the  col- 
umn headed  "Expense."  The  four  blank  columns  following  that  headed  "Expense"  are  for 
such  invoices  as  are  properly  distributable  to  "Work  in  Progress"  (jobs),  and  "Stores"  ac- 
counts, "Property"  (capital  outlay),  for  which  there  are  respective  ledgers  and  for  which 
headings  to  the  columns  should  be  written  on  each  sheet  of  the  register,  care  being  taken  to 


DESCBIPTION    AND    USE    OF    EEGISTEES    AND    SOHEDUT.ES    OK   DOCUMENTS.  13 

keep  the  pasition  ol  the  coluuiu  so  headed  relatively  the  same  sheet  by  sheet._  The  invoice 
bears  a  symbol  or  a  job  name  that  will  determine  the  column  and  ledger  in  which  the  charge 
is  to  be  distributed.  Occasionally  the  charges  on  an  invoice  are  distributed  to  two  or  more 
kinds  of  accounts  and  will  therefore  be  distributed  on  the  register  and  schedule  in  two  or 
more  of  the  distribution  columns. 

The  second  and  third  columns  under  the  heading  "Voucher"  are  for  reference  only,  and 
will  not  be  filled  in  until  after  the  voucher  covering  the  invoices  has  been  prepared  and  reg- 
istered. These  two  columns  are  primarily  for  the  use  of  the  city  controller's  office,  but  may 
be  used  to  advantage  by  the  bureau  to  indicate,  by  entering  the  number  of  the  voucher 
when  drawn,  the  invoices  that  have  gone  to  payment.  The  date  of  delivery  of  goods  in  the 
sixth  column  is  to  indicate  whether  the  rule,  requiring  deliveries  to  be  accompanied  by  in- 
voices, is  being  complied  with.  ', 
The  labor  and  salary  rolls  are  entered  on  the  register  and  schedule  of  invoices  and  pay- 
rolls as  if  they  were  invoices,  except  that  there  is  to  he  posted  no  invoice  nor  order  number, 
no  date  of  registration  nor  claimant.  Note  whether  the  roll  is  for  labor  or  for  salary  and  the 
dates  of  the  period  which  the  roll  covers.  The  distribution  of  the  rolls  to  the  columns  for  the 
different  controlling  accounts  and  detail  ledgers  is  obtained  in  totals  for  each  roll,  from  the 
time  sheet  or  other  document  in  which  the  charges  on  the  roll  to  each  symbol  or  name  of 
account  are  summarized  by  accounts.  The  entry  of  the  payrolls  upon  the  register  is  made 
preferably  at  the  end  of  the  month  after  all  the  invoices  to  be  taken  into  account  for  that 
month  have  been  registered.  The  payrolls  are  entered  only  on  the  departmental  register 
and  schedule,  as  there  are  no  purchases  of  personal  services  by  the  department  of  supplies 
for  other  departments  and  bureaus. 

If  the  amount  of  an  invoice  entered  on  a  register  and  schedule  previous  to  that  of  the 
current  month  has  to  be  changed  by  reason  of  an  error  in  price  or  calculation,  or  for  any 
other  reason,  the  increase  or  decrease  will  be  noted  against  the  original  entry  in  red  ink  as 
a  memorandum  only,  giving  amount  and  date  of  change.  An  entry  covering  the  adjustment 
will  be  made  in  the  adjustment  of  invoice  columns  of  the  voucher  register.  If  the  invoice  is 
cancelled  the  word  "Cancelled"  and  the  date  of  cancellation  should  be  noted  against  the  en- 
try. If  an  invoice  ali-oady  entered  on  a  current  register  and  schedule,  however,  has  to  be 
changed  in  amount  the  register  should  be  changed  to  agree  with  the  invoice  as  corrected, 
and  a  note  made  of  the  original  amount  of  the  invoice  in  the  "Memo"  column;  if  cancelled 
leave  the  number  of  the  invoice  as  originally  entered  and  draw  a  line  in  red  ink  through  the 
remainder  of  the  entry  and  write  "cancelled"  in  the  "Memo"  column,  giving  the  date  of 
cancellation. 

When  there  is  such  a  number  of  invoices  for  a  montli  that  they  cannot  be  listed  on  one 
sheet  of  the  register,  take  second  or  third  sheets,  giving  them  in  the  upper  left-hand  corner 
the  same  number  and  date  as  that  borne  by  the  first.  If  there  is  more  than  one  sheet  it  is  well 
to  give  the  first  sheet  and  each  succeeding  one  consecutive  sheet  numbei-s  at  the  upper  right- 
hand  corner.  When  a  register  and  schedule  is  to  consist  of  more  than  one  sheet  leave  two 
lines  blank  at  the  bottom  of  each  sheet,  and  one  line  at  the  top  of  each  after  the  first,  for 
bringing  forward  totals.  At  the  end  of  the  month  total  all  the  columns,  bringing  forward  the 
footings  from  sheet  to  sheet.  The  combined  totals  of  all  the  columns  to  the  right  of  those 
headed  general  account,  capital  account  and  special  and  trust  account  should  agree  with  the 
combined  totals  of  these  three  columns.  When  this  agreement  is  arrived  at  the  register  itself  is 
in  balance.  There  is  no  way  of  checking  from  totals  the  accuracy  of  the  distribution  of  amounts 
posted  in  the  columns  headed  general  account,  capital  account  and  special  and  trust  account. 
Consequently  special  care  should  be  taken  in  making  these  entries.  It  should  be  seen  at  the 
end  of  the  month  that  the  postings  are  in  the  proper  account  columns  as  called  for  by  the  ap- 
propriation item  numbers  noted  in  the  claimants'  column. 

From  the  register  of  invoices  and  payrolls,  the  following  general  journal  entries  are  made: 
Expenses — General  Account. 
Stores — General  Account. 
AVork  in  Progress — General  Account. 
Reserve  for  Repairs — General  Account. 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account. 
Reserve  for  Capital  Depreciation — Capital  Account. 

To  Invoices  and  Payrolls  Payable — Safety — General  Account. 
Invoices  Payable— Supplies — General  Account. 
Invoices  and  Payrolls  Payable — Safety — Capital  Account. 
Invoices  Payable — Supplies — Capital  Account. 

In  connection  with  the  above  entry  it  will  be  necjssary  in  most  cases  to  make  another  journal 


14  DESCBIPTION   ATTD   VBB    OF   BEOISTEBS    AKD   80HBDTn:.E8   OF  DOOTTlCnm. 

entry  in  order  to  keep  the  debits  and  credits  of  the  general  account  and  of  the  capital  account 
in  balance,  and  to  show  the  net  amount  of  inter-account  transactions.  If  there  are  no  apecial 
and  trust  account  transactions  entering  into  the  above,  the  amount  of  the  journal  entry  for 
the  advances  is  secured  by  taking  the  diflferenoe  between  the  sum  of  the  general  account 
debits  and  the  sum  of  the  general  account  credits  of  the  preceding  journal  entry.  If  the  gen- 
eral account  credits  exceed  the  general  account  debits  there  has  been  a  net  use  of  general 
account  funds  for  capital  account  (permanent  improvements)  and  the  amount  thereof  should 
be  entered  in  the  former  of  the  following  alternate  journal  entries.  If  the  general  account 
debits  exceed  the  general  account  credits  there  has  been  a  net  use  of  capital  account  funds 
for  current  purposes,  and  the  amount  thereof  should  be  entered  in  the  latter  of  the  following 
alternate  journal  entries.  In  any  mixed  journal  entry,  such  as  the  one  above  where  the 
debits  and  credits  of  the  general  account  or  of  the  capital  account  do  not  balance  (though,  of 
course,  the  total  debits  and  credits  of  the  whole  journal  entry  must  always  balance)  a  col- 
lateral entry  for  advances  to  and  from  must  be  used. 

Advances  to  Capital  Account — General  Account, 

To  Advances  from  General  Account — Capital  Account. 

For  general  account  moneys  used  for  permanent  improvements. 

or 
Advances  to  General  Account — Capital  Account, 

To  Advances  from  Capital  Account — General  Account. 

For  capital  account  moneys  ascd  for  current  expenses. 
The  same  instructions  are  applicable  to  special  and  trust  accounts  as  are  given  above  for 
the  general  account. 

4.  Register  and  Schedule  of  Invoices  sent  to  Department  of  Supplies. 

Invoices  for  goods  or  services  ordered  by  the  department  of  supplies  for  other  depart- 
ments or  bureaus  in  its  capacity  as  purchasing  agent  are  received  by  the  operating  depart- 
ment with  the  goods  and,  after  approval  as  to  quantity  and  quality,  are  registered  by  the 
operating  department  as  "supplies"  invoices  in  the  register  of  invoices — supplies  (see  de- 
scription of  register  and  schedule  of  invoices  and  payrolls,  page  12). 

When  these  "supplies"  invoices  are  ready  for  transmittal  to  the  department  of  supplies, 
they   are   to   be   registered   and  scheduled   in  the  register  and  schedule  of  invoices  sent  to 
department  of  supplies,  the  form  of  which  is  similar  to  the  register  and  schedule  of  vouchers 
(Forms  12  and  12A).    These  forms  can  be  used  simply  by  striking  out  the  word  "vouchers"  in 
the  title  and  inserting  the  words  "invoices  to  department  of  supplies." 
The  monthly  journal  entries  from  this  register  are  as  follows : 
Invoices  payable — Supplies — General  Account. 
Invoices  payable — Supplies — Capital  Account. 

To  Invoices  sent  to  Department  of  Supplies — General  Account. 
Invoices  sent  to  Department  ol  Supplies — Capital  Account 
and 

Unencumbered  Balance  of  Appropriations — Supplies — General  Fund  (column  7). 

Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds  (column  10). 

Reserve  for  Contracts — Supplies — General  Fund  (column  5). 

Reserve  for  Contracts — Supplies — Loan  Funds  (Column  8). 

Reserve  for  Open  Market  Orders — Supplies — General  Fund  (column  16). 

Reserve  for  Open  Market  Orders — Supplies — Loan  Funds  (column  17). 

To  Budget  Allowance — Supplies---General  Fund  (total  of  columns  5,  6  and  7). 
Budget  Allowance — Supplies — Loan  Funds  (total  of  columns  8,  9  and  10). 
•Unencumbered  Balance  of  Appropriations — Supplies — General  Fund   (column 

16  minus  column  6). 
•Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds  (column  17 
minus  column  9). 
Any  adjustments  in  invoices  that  are  made  after  they  have  been  received  by  the  depart- 
ment  of  supplies  may  be  obtained  by  the  operating  department  or  bureau  from  the  adjustment 

*Accotint!i  marked  thus  *  indicate  that  the  estimatpd  or  actual  amount  of  the  o|i«>n  market  order* 
liquidated  was  greater  tlian  the  actual  amount  of  tlw*  invoiccH  sent  to  department  of  snppliex.  Tbeae 
accounts  may  be  reversed,  that  is,  become  debit  entries  if  the  invoices  exceed  the  amount  of  the  order* 
on  which  they  are  based,  in  which  latter  case  the  amount  of  these  adjustments  should  l>c  combined  with 
the  first  and  second  debits  of  the  entry  outlined  above. 


DESCRIPTION    AND    USE    OF    EEGISTBBS    AND    SCHEDULES    OF   DOCUMENTS.  15 

in  invoice  columns  of  the  schedule  copies  that  it  receives  from  the  department  of  supplies'  reg- 
ister of  vouchers  sent  to  city  controller.  A  recapitulation  of  these  adjustments  must  be  made 
monthly,  and  a  general  journal  entry  prepared  thereof  similar  to  that  for  the  same  columns 
of  the  departmental  register  of  vouchers  sent  to  city  controller  (see  below). 

5.  Register  and  Schedule  of  Vouchers  Sent  to  City  Controller. 

The  forms  of  register  and  schedule  of  vouchers  (Forms  12  and  12  A)  are  so  designed  that 
the  register  and  the  schedule  may  be  made  at  one  writing  by  means  of  a  carbon  sheet. 
Vouchers  should  be  transmitted  with  the  schedule  to  the  department  of  city  controller.  A 
schedule  miist  accompany  each  consignment  of  vouchers  to  the  city  controller,  even  if  only 
one  voucher  be  transmitted  at  a  time.  At  the  end  of  each  month,  without  fail,  all  vouchers 
registered  under  date  of  the  month  closed  must  have  been  scheduled  to  the  department  of 
city  controller.  The  controller  will  thus  have  the  same  monthly  totals  of  vouchers  drawn  as 
the  department  drawing  them,  and  the  books  of  both  will  be  kept  in  constant  agreement. 

Tie  department  of  supplies  will  register  in  its  register  of  vouchers  all  vouchers  for  sup- 
plies, etc.,  which  it  sends  to  the  city  controller,  whether  purchased  for  its  own  use  or  for  other 
departments.  Departments  which  purchase  their  supplies  through  the  department  of  supplies 
will  enter  in  their  register  of  vouchers  only  those  vouchers  which  are  prepared  in  their  own 
departments  for  expenditures  incurred  by  them  direct  and  not  through  the  department  of  sup- 
plies. 

In  order  that  there  may  be  constant  agreement  between  the  books  of  the  department  of 
supplies  and  the  books  of  tlie  several  departments  for  which  the  former  department  acts  as 
the  purchasing  agent  it  will  be  necessary  for  the  department  of  supplies  to  currently  inform 
the  other  departments  of  the  vouchers  passed  and  transmitted  to  the  city  controller  for  set- 
tlement for  each  department  respectively.  This  will  be  accomplished  by  the  department  of 
supplies  making  two  schedule  copies  of  each  register  of  vouchers,  the  first  copy  for  transmis- 
sion to  the  city  controller  with  the  vouchers  and  the  second  for  transmission  to  the  department 
or  bureau  for  which  the  goods  or  services  represented  by  the  vouchers  were  purchased,  and 
which  has  approved  the  invoices  included  thereon. 

A  series  of  schedule  numbers  should  be  established  by  each  department,  and  these  num- 
bers should  be  inserted  at  the  head  of  the  register  and  schedule  in  the  space  provided  there- 
for. The  date  of  transmittal,  which  on  the  schedule  is  called  the  "Date  of  schedule,"  is  also 
to  be  noted  by  the  department  transmitting  the  schedule. 

The  number  of  the  voucher  registered  will  be  entered  in  the  column  headed  "Voucher 
No."  and  in  the  second  column  will  be  noted  the  date  of  registration,  which  is  the  date  under 
which  the  voucher  is  charged  against  the  general  fund  or  loan  fund  appropriation  account. 

The  third  column  will  show  the  name  of  the  claimant. 

In  the  fourth  column  under  "General,  Loan  or  Special  and  Trust  Item  No."  will  be 
noted  the  number  of  the  general  fund,  loan  fund  or  special  and  trust  fund  appropriation  ac- 
count chargeable,  or  if  there  is  no  number,  the  title  of  the  account  may  be  abbreviated  there- 
under. 

In  the  six  columns  under  the  main  heading  "amount  of  voucher,"  which  is  divided 
into  "General  Fund,"  "Loan  Funds"  and  "Special  Trust  Funds,"  and  again  sub-divided 
under  each  fund  into  "contract,"  "o.  m.  order,"  and  "payroll  and  miscellaneous,"  will  be  en- 
tered the  audited  amount  of  all  vouchers  transmitted  to  the  controller  for  payment. 
Vouchers  issued  on  contract  or  open  market  order  will  be  entered  in  the  respective  columns 
designated  under  the  particular  fund  from  which  the  vouchers  are  payable.  Vouchers  for 
payroll  and  miscellaneous  purchases  or  services  not  received  on  contract  or  open  market 
order  will  be  entered  in  the  "Payroll  and  Miscellaneous"  column  under  "general  fund," 
"loan  fund,"  or  "special  and  trust  fund,"  as  the  case  may  be. 

The  purpose  of  the  columns  headed  "Invoices  or  claims"  is  to  take  care  of  adjustments, 
if  any,  between  the  invoices  as  scheduled  to  the  department  of  city  controller  and  the  in- 
voices as  vouchered.  It  is  for  adjusting  purposes  only  and  in  scheduling  the  voucher,  if  it 
has  been  found  necessary  in  auditing  within  the  department  to  make  any  changes  either  in  the 
amount  of  the  invoice  or  in  the  title  of  the  general  ledger  account  (i.  e.,  expense,  stores, 
work  in  progress,  etc.)  to  which  it  has  been  charged,  such  change  should  be  noted  in  these 
columns.  Not  only  should  the  difference  between  the  amount  previously  reported  on  the 
schedule  of  invoices  and  the  amount  found  to  be  correct  after  audit,  be  entered  in  the  "added 
to  invoice"  column,  but  the  title  of  the  general  ledger  account  affected  should  also  be 
noted. 


16  DESORIPTIOir    AND   USE    OF    BKOISTKB8    AND    B0HEDUI.E8   OF  DOODUBHTB. 

in  the  columu  Jioudcd  "Order  No."  there  will  be  uutured  the  uumber  of  the  order  cov- 
ered by  the  voucher,  and  iu  one  of  tiie  next  two  columns  there  will  be  entered  the  amount 
of  the  order  a»  originally  cHtiiualed.  if  the  order  in  chargeable  to  a  general  fund  appropria- 
tion account  the  amount  thereof  will  be  noted  iu  the  column  "General  Fund;"  if  chargeable 
to  a  loan  fund  item  the  amount  of  the  order  will  be  entered  in  the  column  "Ijoan  Funds." 
The  amount  settled  by  voucher  may  be  more  or  less  than  the  estimated  amount  of  the  open 
market  order  liquidated  on  which  the  voucher  is  based.  This  difference  between  the 
amount  of  the  settlement  voucher  and  the  amount  of  the  order  must  be  adjusted  by  journal 
entry  at  the  close  of  each  month,  as  found  from  totals  of  the  register  of  vouchers. 

The  totals  of  the  register  of  vouchers  for  the  month  will  be  entered  in  ink.  These  totals 
will  form  the  basis  for  the  following  entries  in  tlie  general  journal  to  be  posted  to  their  re- 
spective controlling  accounts  in  the  general  ledger: 

Invoices  and  Payrolls  Payable — Safety — General  Account. 
Invoices  and  Payrolls  Payable — Safety — Capital  Account. 
To  Vouchers  sent  to  City  Controller — General  Account. 
Vouchers  sent  to  City  Controller — Capital  Account, 
and 

Unencumbered  Balance  of  Appropriations — Safety — General  Fund  (column  7). 

Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds  (column  10). 

Reserve  for  Contracts — Safety — General  Fund  (column  5). 

Reserve  for  Contracts — Safety — Loan  Funds  (column  8j. 

Reserve  for  Open  Market  Ordeis — Safety — General  Fund  (column  16). 

Reserve  for  Open  Market  Orders — Safety — Loan  Funds  (column  17). 

To  Budget  Allowance — Safety — General  Fund  (total  of  columns  5,  6  and  7). 
Budget  Allowance — Safety — Loan  Funds  (total  of  columns  8,  9  and  10). 
•Unencumbered  Balance  of  Appropriations — Safety — General    Fund    (column 

16  minus  6). 
•Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds  (column  17 
minus  9). 

6.  Register  and  Schedule  of  Reductions  in  Contract  Reserves. 

The  purpose  of  this  register  is  to  provide  a  complete  record  of  all  reductions  In  contract 
reserves  and  to  establish  totals  by  means  of  which  the  accuracy  of  the  postings  to  the  general 
fund,  loan  funds  and  special  and  trust  funds  appropriation  ledgers,  and  the  contract  ledger 
may  be  proved. 

A  loose  leaf  form  of  register  is  recommended  (Form  13)  so  that  the  register  and  a  sched- 
ule (Form  13  A)  may  be  made  at  one  writing  by  means  of  a  carbon  sheet.  As  soon  as  enough 
entries  have  accumulated  to  till  or  nearly  fill  a  sheet,  the  schedule  should  be  transmitted  to 
the  department  of  city  controller. 

The  number  of  contract  reductions  in  a  month  may  be  so  small  in  some  departments  as 
to  make  the  use  of  a  register  for  this  purpose  appear  unnecessary.  The  form  of  register  rec- 
ommended, however,  is  designed  to  be  prepared  with  the  schedule  at  one  writing  by  means 
of  a  carbon  sheet.  The  schedule,  therefore,  will  take  the  place  of  the  various  forms  of  advice 
of  contract  reductions  now  sent  to  the  controller.  The  register  with  the  schedule  will  es- 
tablish a  standard  method  in  all  departments  of  registering  and  reporting  reductions  in  con- 
tract reserves.  In  some  cases,  however,  it  may  be  necessary  for  the  city  controller  to  require 
that  the  schedule  be  supplemented  with  a  further  statement. 

In  the  first  column,  "Date  of  Registration,"  will  be  noted  the  date  on  which  the  reduction 
in  the  contract  is  registered. 

The  second  columu,  headed  "Department,  Bureau,  etc.,"  is  designed  principally  for  aae 
in  the  department  of  supplies  to  indicate  the  departments,  bureaus,  or  offices  whose  supply 
items  of  appropriations,  controlled  by  the  department  of  supplies,  are  affected  by  reductions  in 
contracts  made  by  the  latter  department.  It  will  be  necessary  for  the  department  of  supplies 
in  writing  its  register  and  schedule  of  reductions  in  contract  reserves  to  make  an  extra  copy 
of  the  schedule  for  transmittal  to  the  department  or  bureau  whose  appropriation  accounts  are 
affected  thereby.    The  latter  department  will  use  its  copy  of  the  schedule  to  reduce  its  mem- 

*Accounta  marked  thus  •  indii-nte  that  the  estlmnted  or  actual  amount  of  the  open  market  ordera 
liquidated  was  greater  than  the  amount  of  the  vouchers  sent  to  city  controller.  These  accounts  may 
be  reversed,  that  is,  become  debit  entries  if  the  vouchers  sent  to  city  controller  exceed  the  amount  of 
the  ordeo's  on  whleh  Hhey  are  hnsed,  la  which  latter  case  the  amount  of  the.«ie  ndJiiRtmenta  should  be 
combined   with  the  first  and   second  debits  of  the  entry  outlined  above. 


DESCEIPTION    AND    USE    OF    EEGISTEES    AND    SCHEDULES    OF   DOCUMENTS.  17 

oranda  contract  accounts  and  increase  its  memoranda  appropriation  accounts.  It  will  also  be 
necessary  for  it  to  make  a  general  journal  entry  for  its  memoranda  "supplies"  appropria- 
tion accounts  similar  to  that  given  below  for  "Safety"  appropriation  accounts. 

In  the  third  column  will  be  noted  the  item  number  of  the  appropriation  affected  by  the 
reduction  in  the  contract  reserves. 

In  the  column  under  "Contractor"  will  be  entered  the  name  of  the  individual,  firm  or 
corporation  whose  contract  has  been  reduced,  and  in  the  next  column  will  be  entered  the  num- 
ber of  the  contract. 

Under  the  main  heading  "Amount  of  Reduction"  and  in  the  column  "General  Fund"  or 
"Loan  Funds"  as  the  case  may  be,  the  amount  of  the  reduction  is  noted.  If  the  contract  re- 
duced is  chargeable  to  a  general  fund  appropriation  account,  the  amount  of  the  re- 
duction will  be  entered  in  the  "General  Fund"  column;  if  the  contract  reduced  is  chargeable 
to  a  loan  fund  account,  the  amount  of  the  reduction  will  be  entered  in  the  "Loan  Funds" 
column. 

The  nature  of  the  contract,  i.  e.,  whether  it  is  for  supplies,  equipment,  construction,  etc., 
will  be  noted  in  the  last  column  under  this  heading. 

Before  transmitting  schedules  of  reductions  in  contract  reserves  they  must  be  certified  to 
and  approved  by  the  proper  certifying  and  approving  officers  in  the  departments  in  which  the 
schedules  originate.  Space  for  certification  and  approval  is  provided  at  the  bottom  of  the 
register  and  the  schedule. 

The  totals  of  the  register  of  reductions  in.  contract  reserves  will  be  entered  in  ink  and 
will  form  the  basis  for  the  following  journal  entry: 
Reserve  for  Contracts — Safety — General  Fund. 
Reserve  for  Contracts — Safety — Loan  Funds. 

To  Unencumbered  Balance  of  Appropriations— Safety — General  Fund. 
Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds. 

7.  Register  and  Schedule  of  Properties,  etc..  Transferred  or  Otherwise  Disposed  of. 

The  inter-department  invoices  for  land,  structures,  non-structural  improvements  and 
equipment,  as  well  as  any  other  assets  the  custodianship  of  which  is  transferred  from  one  de- 
partment or  bureau  to  another  (other  than  services,  materials,  supplies  and  equipment  which 
have  been  charged  to  inter-departmental  services  in  the  distribution  upon  the  register  of 
invoices  and  payrolls;  and  materials,  supplies  and  equipment  issued  from  storehouse  which 
have  been  charged  to  inter-departmental  services  through  the  medium  of  the  monthly  report 
of  stores  issued)  will  be  registered  at  cost  (book)  value  in  a  register  of  properties,  etc.,  trans- 
ferred, a  carbon  copy  of  which  must  be  transmitted  to  the  department  of  city  controller. 
The  monthly  totals  from  the  register  should  be  journalized  as  follows : 
Inter-departmental  Services  Rendered — General  Account. 

To  Land,  Structures,  other  Improvements  and  Equipment — Capital  Account. 
Stores — General  Account. 
"Work  in  Progress — General  Acccount. 
Expense — General  Account, 
and 

Advances  to  General  Account — Capital  Account. 

To  Advances  from  Capital  Account— General  Account. 

8.  Register  and  Schedule  of  Inter-Departmental  Services,  etc.,  Received. 

This  register  provides  for  a  current  record  of  all  inter-departmental  invoices  for  ser- 
vices, materials,  supplies  and  equipment  received  from  other  departments  and  bureaus,  and 
for  such  transfers  of  the  custodianship  of  land,  structures,  non-structural  improvements  and 
other  immovable  properties  belonging  to  the  city  as  may  be  made  to  it. 

The  monthly  totals  drawn  from  this  register  produce  the  following  journal  entry : 
Expenses — General  Account. 
Stores — General  Accoimt. 
"Work  in  Progress — General  Account. 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account. 
Accounts  Receivable — General  Account. 

To  Inter-Departmental  Services  Received — General  Account, 
and 

Advances  to  Capital  Account — General  Account. 

To  Advances  from  General  Account — Capital  Account. 


18  DKSCRIPTION    AND   USE    OF    SE0I8TEB8    AND    B0HEDUI.E8   OF  DOOrMSKTS. 

1).  Monthly  Report  of  Stores  Issued  from  Storehouses. 

A  form  of  monthly  report  of  stores  issued  (Form  2i)  has  been  prepared  on  which  the  vari- 
ous classes  of  articles  or  stores  ledger  accounts  may  be  printed,  thereby  avoiding  the  necessity 
of  rewriting  the  names  of  the  articles  in  each  monthly  report.  The  report  will  show  the 
amount  of  stores  distributed  under  each  expense  classification. 

The  report  of  stores  issued  must  be  made  up  monthly  from  the  signed  requisitions  of  sup- 
plies issued  during  a  month.  In  the  columns  provided  on  the  report  form  the  total  quantity 
and  amount  of  each  article  issued  for  the  month  will  be  noted  under  the  particular  ex- 
pense classification  of  each  department,  the  titles  of  which  classification  will  be  entered  in 
the  blank  space  at  the  head  of  each  column.  The  charges  to  the  respective  expense  accounts 
affected  in  the  expense  ledger  for  stores  issued  will  be  made  from  this  monthly  report.  In  the 
general  ledger  the  controlling  accounts,  "Expenses"  and  "Stores,"  will  be  debited  and  cred- 
ited respectively  with  the  total  amount  of  stores  issued  for  the  month.  Stores  issued  to  con- 
struction work  will  of  course  be  a  charge  to  a  construction  rather  than  an  expense  account. 

The  assembling  sheets  (Form  24  A)  will  be  used  in  connection  with  the  montlily  report 
of  stores  issued  for  assembling  by  divisions  or  organization  units  the  stores  issued  daily  dur- 
ing the  month  to  which  the  report  relates. 

The  monthly  report  of  stores  issued  from  storehouses  is  journalized  as  follows: 
Expense — General  Account. 
Reserve  for  Repairs — General  Account. 
Accounts  Receivable — General  Account. 
Work  in  Progress — General  Account. 
Inter-departmental   Services — General  Account. 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account. 
To  Stores — General  Account. 


and 


Advances  to  Capital  Account — General  Account. 

To  Advances  from  General  Account — Capital  Account. 


10.  Monthly  Report  of  Stores  Returned  to  Storehouses. 

The  monthly  report  of  stores  returned  to  storehouses  will  be  prepared  by  the  store- 
keeper each  month,  and  will  show  in  summary  all  stores  returned  to  storehouses  by  depart- 
ments or  bureaus  to  which  they  have  been  issued  on  requisition.  A  form  similar  to  that  used 
for  the  monthly  report  of  stores  will  be  utilized.  The  storekeeper  will  check  the  goods  received 
and  issue  a  receipt  in  duplicate,  and  file  the  duplicate.  The  latter  is  used  at  the  close 
of  month  in  classifying  and  preparing  the  monthly  report  of  stores  returned  to  storehouses. 
Postings  to  the  stores  (debits),  expense  (credits)  and  property  (credits)  detail  ledgers  should 
be  made  from  these  monthly  reports  of  stores  returned  to  storehouses,  for  each  kind  of  stores 
received  back. 

The  general  journal  entries  are  as  follows : 
Stores — General  Account. 

To  Expense — General  Account. 

Reserve  for  Repairs — General  Account. 
"Work  in  Progress — General  Account. 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account 
and 

Advances  to  General  Account — Capital  Account. 

To  Advances  from  Capital  Account — General  Account. 

11.  Register  and  Schedule  of  Reserves  for  Repairs  and  Capital  Depreciation. 

This  register  provides  a  means  for  obtaining  currently  each  month  the  amounts  to  be  set 
aside  in  reserve  for  repairs  and  capital  depreciation  and  the  amount  of  the  charges  to  expeoM 
for  the  former  and  to  investment  of  the  city — capital  account  for  the  latter.  The  reserve  for 
capital  depreciation  will  be  charged  to  investment  of  the  city  (surplus) — capital  account — 
instead  of  to  expense  in  view  of  the  provision  of  the  state  constitution  tiiat  requires  the  pay- 
ment of  all  debt  from  current  revenues  within  thirty  years  after  it  is  created.  The  conse- 
quent heavy  contribution  from  general  account  income  for  the  reduction  of  capital  account 
indebtedness  that  must  be  made  each  year  much  more  than  offsets  the  capital  depreciation  in 
the  city's  property  and  equipment. 


DESCEIPTION    AND    USE    OF    BEGISTERS    AND    SCHEDULES    OF   DOCUMENTS.  19 

Separate  portions  of  the  register  will  be  set  aside  for  the  reserve  for  repairs  and  the  re- 
serve for  capital  depreciation.  The  same  ruling  will  do  for  both  portions  of  the  register.  In 
the  first  column  is  entered  the  estimated  percentage  of  the  annual  reserve  for  repairs  or  for 
capital  depreciation,  as  the  ease  may  be.  In  the  second  column  is  entered  the  monthly  pro- 
portion of  the  annual  percentage.  In  the  third  column  is  entered  the  title  of  the  general  prop- 
erty and  equipment  class.  The  following  columns  are  in  twelve  groups  of  two  each,  there 
being  one  group  for  each  month.  The  first  of  the  two  columns  in  each  group  is  for  book  valu- 
ation (at  cost)  of  the  property  in  each  class,  as  indicated  by  the  class  title.  The  second 
column  is  for  the  amount  of  the  monthly  reserve. 

The  amounts  of  reserves  for  repairs  should  be  posted  monthly  to  the  credit  of  the  detail 
reserve  for  repairs  accounts  in  the  reserves  for  repairs  and  capital  depreciation  ledger  (for 
further  details,  see  page  29)  and  should  be  debited  monthly  to  the  proper  detail  accounts  in 
the  expense  ledger.  By  this  method  provision  is  currently  made  for  the  repair  of  properties 
and  equipment,  actual  expenditures  for  which  are  very  heavy  in  some  months  and  very  light 
in  others. 

The  general  journal  entry  for  the  monthly  total  of  this  register  for  the  reserve  for  repairs 
is  as  follows: 

Expense — General  Account. 

To  Reserve  for  Repairs — General  Account. 

The  amount  of  capital  depreciation  is  similarly  extended  upon  a  monthly  basis.  As  capi- 
tal depreciation  is  chargeable  to  investment  of  the  city  (surplus) — capital  account,  no  detail 
debit  will  be  necessary,  but  detail  credit  postings  will  be  required  to  the  detail  capital  de- 
preciation accounts  of  the  resei've  for  repairs  and  capital  depreciation  ledger. 

The  general  journal  entry  for  the  monthly  total  of  the  reserve  for  capital  depreciation  of 
this  register  is  as  follows : 

Investment  of  the  City — Capital  Account. 

To  Reserve  for  Capital  Depreciation — Capital  Account. 

12.  Register  and  Schedule  of  Revenue  Accrual. 

The  register  of  revenue  accrued  is  a  columnar  book  in  which  is  recorded  all  the  various 
revenues  accruing  to  the  department  or  bureau.  The  form  for  the  register  of  revenue  ac- 
crual is  similar  to  that  used  for  the  register  of  depreciation,  having  wide  space  for  listing  the 
sources  of  revenue  at  the  left,  and  a  column  for  total  yearly  revenue  accrued.  To  the  right 
will  be  columns  for  each  month  to  which  can  be  extended  for  journal  entry  purposes  the 
monthly  proportions  of  revenue  accrued.    The  monthly  journal  entry  for  revenue  accruals  is: 

Receiver  of  Taxes — General  Account. 

Revenues  Accrued,  not  due — General  Account. 

Accounts  Receivable — General  Account. 
To  Revenue,  191 — General  Account. 


CHAPTER    IV 

DESCRIPTION  AND  USE  OP  DETAIL  LEDGERS. 

The  purpose  of  the  detail  ledgers  Is  to  state  in  detail  the  transactions  pertaining 
to  every  subject  concerning  which  information  is  needed.  The  number  and  classifica- 
tion of  the  accounts  in  the  detail  ledgers  depends  on  the  number  and  classification  of 
the  subjects,  concerning  which  administrative  judgment  is  required.  The  accuracy  of 
the  postings  to  the  several  detail  ledgers  should  be  proven  monthly  by  checking  the 
monthly  schedules  of  balances  and  totals  thereof  (Chapter  VI)  to  the  respective  con- 
trolling accounts  in  the  general  ledger. 

By  general  classes,  the  detail  ledgers  used  will  be  as  follows : 

1.  Appropriation  ledgers. 

a.  General  fund. 

b.  Loan  funds. 

c.  Special  and  trust  funds. 

2.  Contract  ledger. 

3.  Claimant's  ledger. 

4.  Expense  ledger. 

5.  Stores  ledger. 

6.  Work  in  progress  ledger. 

7.  Property  ledger. 

8.  Reserve  for  repairs  and  capital  depreciation  lodger. 

9.  Revenue  ledger. 

1.  Appropriation  Ledgers. 

a.  General  Fund. 

The  general  fund  ledger  of  each  department  will  contain  an  account  with  each 
appropriation,  other  than  those  provided  from  loan  funds  or  special  and  trust  funds, 
in  which  the  department  has  an  interest.  Each  account  will  show  every  transaction 
aflfecting  it ;  each  account  will  show  not  only  the  amount  appropriated,  but  the  con- 
tracts awarded,  tlie  open  market  orders  issued,  and  the  vouchers  drawn  against  the 
authorization  to  spend  indicated  in  the  title.  Each  account  will  show  the  balance  un- 
expended and  the  balance  unencumbered. 

The  general  fund  ledger  (Form  20)  may  be  provided  either  in  a  loose  leaf  or  a 
bound  book.  The  amounts  of  the  budget  allowance  will  be  the  first  entries  made  in  the 
ledger,  space  at  the  top  of  the  ledger  sheet  being  provided  for  this  purpose,  the 
amount  of  the  appropriation  being  entered  in  the  first  "amount"  column  to  the  left 
Additional  appropriations  and  transfers  will  be  entered  in  the  "Amount"  column  as 
they  are  subsequently  authorized,  the  date  of  each  authorization  being  noted  in  the 
date  column,  and  the  character  of  the  appropriation  in  the  "Memo"  column.  In 
opening  a  new  appropriation  ledger  at  the  beginning  of  a  year,  the  non-merging  bal- 
ance of  each  appropriation  of  the  previous  year  should  be  carried  forward  marking  in 
the  "Memo"  column  "Books  of  191—." 

By  columnar  arrangement  the  front  of  the  ledger  page  is  divided  into  contract  en- 
cumbrances and  open  market  order  encumbrances ;  the  reverse  side  of  the  page  is  pro- 
vided for  expenditures.  For  those  departments  which  may  have  a  large  number  of 
expenditure  items  chargeable  against  a  particular  item  of  appropriation  in  excess  of 
the  available  space  provided  on  the  reverse  of  the  encumbrance  ledger  slieet.  extra 
sheets  (Form  20  A)  are  designed  with  the  expenditure  ruling  on  both  sides  for  inser- 
tion after  the  encumbrance  sheet. 

As  each  contract  against  a  general  fund  appropriation  is  awarded  and  entered  in 
the  register  of  contracts,  the  amount  of  the  award  will  be  posted  in  the  "Amount"  col- 
umn of  the  page  carrying  the  account  of  the  appropriation  item  affected  under  the 
general  caption  "Contract  Encumbrances,"  the  date  of  the  award  and  the  number  of 
the  contract  being  also  noted  in  the  respective  columns  thereunder.  Reductions  and 
cancellations  made  subsequently  in  contracts  will  first  be  entered  in  the  register  of  re- 
ductions in  contract  reserves  and  the  amounts  thereof  entered  in  the  column  "Deduct 

20 


DESCEIPTION    AND    USE    OF   DETAIL    LEDGEES.  21 

Reductions  in  Contracts"  under  the  caption  "Contract  Encumbrances"  of  the  appro- 
priation item  account  affected. 

Open  market  orders  issued  chargeable  to  general  fund  appropriation  accounts 
will  first  be  registered  in  the  register  of  orders,  and  the  amount  thereof  will  be  posted 
in  detail  in  the  column  "Estimated  Amount"  of  the  general  fund  appropriation  ledger 
under  the  general  caption  of  "Open  Market  Order  Encumbrances,"  the  dates  and  order 
numbers  being  entered  in  the  respective  columns  thereunder.  Differences,  if  any,  be- 
tween the  amount  of  an  open  market  order  as  issued  and  the  amount  of  a  voucher  liqui- 
dating the  order  will  be  entered  in  chronological  order  in  the  columns  "Add"  and 
"Deduct"  under  the  sub-title  "Adjustments"  of  the  general  caption  "Open  Market 
Order  Encumbrances."  The  latter  caption  has  been  subdivided  into  two  sections  of 
duplicate  columns  for  open  market  order  amounts  and  adjustments.  Postings  under 
this  caption  will  be  entered  in  the  first  section  to  the  left,  and  when  the  section  is  filled, 
continued  therefrom  to  the  second  section  on  the  right. 

It  has  been  estimated  that  on  an  average  the  number  of  open  market  order  encum- 
brances posted  in  a  year  to  an  appropriation  account  will  be  almost  twice  the  number 
of  contract  award  items  posted  during  the  same  period.  Departments  using  the  bound 
book  form  of  ledgers  will  have  to  exercise  some  judgment  in  this  matter  at  the  time  of 
opening  their  books  for  a  new  fiscal  year.  If  sufficient  space  is  not  available  on  a  led- 
ger page  for  all  the  entries  posted  in  a  year  to  a  particular  appropriation  item  thereon, 
extra  pages  immediately  following  the  first  page  of  the  appropriation  item  should  be 
allowed  for  that  purpose.  All  the  ledger  pages  relating  to  one  appropriation  account 
would  thus  be  kept  together  rather  than  scattered  through  the  ledger.  Departments 
using  the  loose  leaf  form  of  ledger  may  insert  additional  ledger  sheets  as  required. 

After  expenditure  vouchers  have  been  registered  in  the  register  of  vouchers  they 
will  be  entered  in  the  appropriation  ledgers  in  the  particular  account  affected  under 
the  general  caption  of  "Expenditures." 

In  the  first  column  will  be  noted  the  date  of  registration  or  the  date  the  voucher 
becomes  a  charge  against  the  appropriation,  the  warrant  number  and  the  order  num- 
ber on  which  the  expenditure  is  based,  being  entered  on  the  same  line  with  the  date 
in  the  next  two  columns,  in  their  order. 

The  name  of  the  payee  or  claimant  will  be  entered  in  the  column  headed  "In 
Whose  Favor." 

In  the  column  headed  "For  "What"  will  be  noted  short  particulars  as  to  the  nature 
of  the  articles  or  services  covered  by  the  voucher. 

In  the  three  columns  under  the  sub-caption  of  "Audited  Vouchers,  Adjustments 
and  Cancellations"  will  be  entered  the  amounts  of  expenditure  vouchers  drawn  in  pay- 
ment of  contracts  or  contract  orders,  opm  market  orders,  payroll  and  miscellaneous. 
Voixchers  drawn  in  payment  of  contracts  or  contract  orders  will  be  entered  in  the 
"Contract"  column,  vouchers  drawn  in  payment  of  open  market  orders  will  be  entered 
in  the  column  of  that  heading,  and  vou<5hers  drawn  in  payment  of  payrolls  and  mis- 
cellaneous claims  will  be  entered  in  the  column  "Payroll  and  Miscellaneous." 

In  the  last  column  with  the  heading  "Amount"  under  the  sub-title  "Unencum- 
bered Balance  of  Appropriations"  will  be  noted  the  balance  unencumbered,  i.  e.,  the 
balance  remaining  in  an  appropriation  over  and  above  the  total  amount  of  contracts 
awarded,  open  market  orders  issued,  and  payroll  and  miscellaneous  expenditures  made. 
The  date  for  which  this  balance  is  determined  will  be  indicated  in  the  date  column 
alongside  of  the  amount. 

The  sum  of  the  totals  for  the  month  of  all  amounts  entered  in  the  "Amount"  col- 
umn under  "Contract  Encumbrances"  for  all  the  general  fund  appropriation  accounts 
will  agree  with  the  total  amount  of  general  fund  contracts  registered,  as  per  monthly 
summary  of  the  register  of  contracts,  and  this  agreement  should  be  effected  at  the  end 
of  each  month  before  the  monthly  total  is  journalized  for  entry  in  the  general  ledger. 

The  sum  of  the  totals  drawn  from  the  column  "estimated  amount"  under  the  cap- 
tion "Open  Market  Order  Encumbrances"  for  all  the  general  fund  appropriation 
accounts  will  agree  with  the  total  of  the  column  entitled  "Open  Market"  under  "Gen- 
eral Fund"  in  the  register  of  orders,  and  this  agreement  shoiild  be  effected  at  the  end  of 
each  month  as  a  proof  of  the  accuracy  of  the  bookkeeping  work  before  the  monthly 
total  of  the  register  of  general  fund  open  market  orders  issued  is  journalized  for 
entry  in  the  general  ledger. 

It  will  be  seen  that  the  difference  at  any  time  between  the  total  of  the  amount 


22 


DXflOBIPTIOir    AND   USE    OF   DETAII,   I,EDOEBS. 


column  under  "Contract  Encumbrances"  and  the  total  payments  on  account  of  con- 
tracts as  indicated  in  the  column  entitled  "Contracts"  under  "Expenditures,"  minus 
the  reductions  in  contracts,  will  be  the  amount  of  the  contingent  liability  on  contracts 
unvouchered ;  and  similarly  the  difference  at  any  time  between  the  total  of  the  column 
entitled  "Estimated  Amount,"  under  the  caption  "Open  Market  Order  Encumbrance," 
and  the  total  of  vouchers  drawn  in  payment  thereof  ("Open  Market  Order"  column 
under  "Expenditures"),  plus  or  minus  the  adjustments,  will  be  the  amount  of  outstand- 
ing open  market  orders  unvouchered. 

The  total  of  the  columns  entitled  "Contract,"  "Open  Market  Order,"  and  "Payroll 
and  Miscellaneous"  under  the  caption  "Expenditures"  deducted  from  the  total  appro- 
priations (as  adjusted  by  transfers  to  and  from)  will  show  at  all  times  the  unexpended 
amount  of  each  general  fund  appropriation  account;  and  to  ascertain  the  balance  avail- 
ble  in  each  appropriation,  for  further  contracts,  open  market  orders  and  payroll  and 
miscellaneous  payments,  it  is  only  necessary  to  deduct  from  this  unexperCied  balance 
the  balance  of  contracts  and  open  market  orders  unvouchered.  This  same  result  may 
be  secured,  however,  in  another  way  by  deducting  from  the  total  appropriations  (as 
adjusted  by  transfers  to  and  from)  the  sum  of  the  totals  of  the  "Contract  Encumbrance," 
and  "Open  Market  Order  Encumbrance"  and  "Payroll  and  Miscellaneous"  exi>enditure 
columns  of  the  ledger.  The  balance  thus  obtained  is  known  as  the  "unencumbered  bal- 
ance of  the  appropriation." 

The  sum  of  the  total  expenditures  posted  each  month  in  detail  in  the  columns  en- 
titled "Contract,"  "Open  Market  Order,"  "Payroll  and  Miscellaneous"  in  all  general 
fund  appropriation  accounts  must  agree  with  the  monthly  totals  of  the  several  sec- 
tions of  the  register  of  vouchers,  and  this  agreement  should  be  effected  at  the  end  of 
every  month. 

As  explained  previously  herein,  no  postings  of  contract  orders  issued  will  be  made 
from  the  register  of  orders  to  the  appropriation  ledgers.  Therefore  there  will  be  no 
adjusting  entries  in  these  ledgers  for  differences  between  the  amount  of  a  voucher  and 
the  amount  of  a  contract  order  as  issued.  The  ultimate  purpose  in  the  columnar  ar- 
rangement of  the  appropriation  ledger  is  to  show  the  balance  unexpended  and  the  bal- 
ance unencumhered.  In  the  case  of  contracts  this  purpose  is  attained  by  posting  to  the 
respective  appropriation  accounts  the  amount  awarded  for  each  contract.  These  en- 
tries serve  to  establish  the  contract  encumbrance  against  appropriations  regardless  of 
subsequent  orders  issued  against  those  contracts.  Only  contract  reductions,  cancella- 
tions or  voucher  payments  on  aecotmt  of  contracts  will  affect  the  amount  of  contract 
encumbrances.     The  procedure  for  such  entries  is  treated  in  the  foregoing. 

In  the  case  of  open  market  orders,  liowever,  the  only  encumbrance  against  appro- 
priations is  the  estimated  or  actual  amount  of  the  order  as  issued.  If,  therefore,  subse- 
quent adjustment  is  necessary  between  the  estimated  amount  of  an  order  and  the 
voucher  payment  the  amount  of  adjustment  must  be  shown  in  the  appropriation 
account  affected,  in  one  of  the  columns  "Add"  or  "Deduct"  under  the  general  caption 
of  "Open  Market  Order  Encumbrances,"  in  order  that  each  account  may  show  the  cor- 
rect amount  of  open  market  order  encumbrances.  These  adjustment  amounts  will  be 
found  by  taking  the  difference  between  each  voucher  amount  and  the  amount  of  the 
order  liquidated  by  the  voucher  and  posting  the  difference  as  directed.  The  proof  of 
the  accuracy  of  the  individual  adjustments  in  a  month  may  be  determined  at  the  end 
of  the  month  by  comparing  the  net  additions  or  deductions,  as  shown  in  all  the  appro- 
priation accounts  with  the  net  additions  or  deductions,  as  shown  by  the  register  of 
vouchers.  The  general  ledger  controlling  accounts  affected  by  such  adjustments  in 
open  market  orders  are  adjusted  at  the  close  of  a  month  by  journal  entry  from  the  regis- 
ter of  vouchers,  ns  explained  in  the  foregoing  remarks  on  the  register  of  vouchers. 

If  a  voucher  has  been  decreased  in  amount  or  cancelled  after  it  has  been  trans- 
mitted to  the  city  controller,  the  department  in  which  the  voucher  originated  should 
be  notified  by  the  city  controller  (a  new  warrant  drawn  if  necessary)  and  tlie  amount 
of  the  decrease  or  cancellation  should  be  noted  in  either  the  "Contract,"  "Open  Mar- 
ket Order"  or  "Payroll  and  Miscellaneous"  column  under  "Expenditures"  of  the  ap- 
propriation account  affected  (in  red  ink)  ;  imd  if  an  open  market  order  voucher  the 
amount  of  reduction  must  be  indicated  in  the  "Deduct"  column  under  "Open  Market 
Order  Encumbrances."  This  entry  will  decrease  the  total  amount  of  vouchers  charged 
against  the  appropriation  account.  At  the  end  of  each  month  the  advices  from  the  city 
controller's  office  of  voucher  adjustments  shotild  be  summarizt^d  nnd  an  entry  of  the 


BESCEIPTION    AND    USE    OF   DETAIL    LEDGERS. 


23 


totals  thus  secured  prepared  for  the  general  journal,  debiting  vouchers  sent  to  city 
controller  (general  account,  capital  account  or  special  and  trust  account)  and  crediting 
expenses  or  other  proprietary  controlling  accounts  affected,  at  the  same  time  one  of 
the  following  collateral  fund  entries  will  be  made  for  the  same  amount  according  to  the 
class  to  which  the  voucher  decreased  or  cancelled  belongs : 

1.  If  a  Payroll  and  Miscellaneous  Voucher  or  Open  Market  Order  Voucher : 

Budget  Allowance  (General,  Loan  or  Special  and  Trust  Fund). 

To  Unencumbered  Balance  of  Appropriations    (General,   Loan  or  Spe- 
cial and  Trust  Funds). 

2.  If  a  Contract  Voucher : 

Budget  Allowance  (General,  Loan  or  Special  and  Trust  Funds). 

To  Reserve  for  Contracts  (General,  Loan  or  Special  and  Trust  Funds). 

In  the  case  of  advices  from  the  city  controller's  office  of  voucher  adjustments  to 
the  department  of  supplies,  instead  of  crediting  expense  or  other  proprietary  controlling 
accounts,  as  indicated  above,  the  department  of  supplies  will  credit  "Invoices  Received 
from  Departments  and  Bureaus."    Its  fund  entries  are  similar  to  ihose  above. 

The  operating  department  or  bureau  whose  accounts  are  thus  affected,  however, 
will  journalize  its  copy  of  the  advices  of  the  city  controller's  voucher  adjustments  by 
crediting  expense  or  other  proprietary  controlling  accounts  affected  as  noted  above  for 
advices  of  city  controller's  adjustments  in  its  own  departmental  vouchers  and  will  use 
the  fund  entries  noted  above.  These  adjustment  journal  entries  are  all  based  upon  the 
assumption  that  the  adjustments  are  reductions;  if,  however,  the  adjustments  amount 
to  a  net  increase,  all  of  the  above  adjustment  entries  should  be  reversed  as  to  debits  and 
credits. 

Similarly  the  particular  accounts  affected  in  the  contract  ledger  and  the  claimants' 
ledger  respectively  will  have  to  be  changed  to  correspond  with  any  adjustments  made 
in  the  appropriation  accounts  for  contract  voucher  or  open  market  order  voucher  re- 
ductions. Red  ink  entries  of  the  reductions  will  be  made  in  the  "vouchers"  column  and 
black  ink  entries  in  the  "adjustments"  columns  of  the  contract  and  the  claimants' 
ledgers,  and  in  the  case  of  open  market  order  vouchers  a  red  ink  entry  would  also  be 
necessary  in  the  "Amount"  column  under  "Orders  liquidated"  in  the  claimants'  ledger. 

If  the  month's  record  in  the  voucher  register  containing  the  original  entry  of  the 
altered  or  cancelled  voucher  has  not  been  closed,  the  proprietary  or  fund  general  jour- 
nal entries  may  be  dispensed  with  by  making  a  current  entry  for  the  amount  of  the  ad- 
justment in  red  ink  in  the  voucher  register.  The  various  adjustment  entries  in  the 
detail  ledgers  as  described  above,  would  still  have  to  be  made,  however,  as  the  original 
amount  of  the  voucher  would  have  been  previously  posted  thereto  before  it  was  sent  to 
the  city  controller's  office  for  audit  and  settlement. 

The  following  agreements  should  be  effected  at  the  end  of  each  month  between  the 
general  ledger  controlling  accounts  and  the  schedules  of  balances  of  the  several  detail 
ledgers.  The  schedule  of  balances  of  "Open  Market  Order  Encumbrances"  of  all  ac- 
counts in  the  general  fund  appropriation  ledger  should  agree  with  the  credit  balance 
of  "Reserve  for  Open  Market  Orders — general  fund"  in  the  general  ledger.  Likewise 
the  total  of  the  unvouchered  balances  of  "Contract  Encumbrances"  of  all  accounts  in 
the  general  fund  appropriation  ledger  should  agree  with  the  credit  balance  of  "reserve 
for  contracts — general  fund"  in  the  general  ledger,  and  should  be  supported  by  a 
schedule  of  contract  balances  prepared  from  the  contract  ledger.  The  total  of  all  unen- 
cumbered balances  in  the  general  fund  appropriation  ledger  should  agree  with  the 
credit  balance  of  the  general  ledger  account  entitled  "Unencumbered  balance  of  ap- 
propriations— general  fund."  These  agreements  are  proofs  of  the  correctness  of  the 
several  records  mentioned,  and  should  be  effected  not  less  frequently  than  once  a  month; 
schedules  of  balances  of  the  general  fund  appropriation  ledger  and  the  other  detail 
fund  ledgers  should  be  taken  off  at  the  end  of  each  month  for  this  purpose. 

Appropriation  accounts  for  salaries  and  wages  will  be  opened  in  the  appropriation 
ledgers  in  the  same  manner  that  accounts  for  other  than  salaries  and  wages  are  opened. 
In  such  cases,  there  being  no  contract  or  open  market  order  encumbrances,  the  columns 
provided  for  recording  such  details  in  the  appropriation  ledgers  will  remain  blank,  and 
only  the  appropriation  and  expenditure  columns  therein  will  be  used  to  record  vouchers 
passed  for  salaries  and  wages.  "Where  a  loose  leaf  appropriation  ledger  is  used,  it  may 
be  found  practical  in  large  departments  and  bureaus  to  have  some  sheets  ruled  solely 
3 


24  DKBOBIPTION    AND    USE    OV   DKTAIL   LEDOKBS. 

for  expendituren  for  use  Avith  salary  and  wage  appropriation  items,  whereas  others  can  be 
ruled  for  encumbrances  as  well  as  expenditures. 

h.  Loan  Funds. 

The  loan  fund  apin-opriation  ledger  (Form  20)  should  contain  an  account  with  each  ap- 
propriation made  from  loans  showing  the  amount  made  available  through  appropriation 
or  transfer,  the  contracts  awarded,  the  open  market  orders  issued,  the  vouchers  drawn  against 
the  same,  and  the  unexpended  and  the  unencumbered  balance. 

The  form  and  method  of  using  the  loan  fund  ledger  is  the  same  as  that  described  in  the 
foregoing  for  the  general  fund  ledger. 

The  sheets  for  the  general  fund  and  loan  fund  ledgers  respectively  may  be  kept  in  two 
separate  ledger  binders,  or  they  may  be  kept  in  one  binder  with  two  separate  sections  indi- 
cated by  a  dividing  sheet  with  a  tab.  Appropriations  from  temporary  loans  will  be  consid- 
ered as  general  fund  appropriations  and  entered  in  the  general  fund  appropriation  ledger 
rather  than  in  the  loan  fund  appropriation  ledger,  for  the  reason  that  temporary  loans  are 
of  very  short  duration — not  over  four  months ;  are  used  generally  to  meet  current  expenses 
of  the  city,  and  are  usually  repaid  out  of  general  fund  appropriations  of  the  sncceedini; 
year, 

c.  Special  and  Trust  Funds. 

The  special  and  trust  funds  appropriation  ledger  should  be  kept  in  the  same  manner  as 
the  general  fund  and  loan  fund  ledgers,  upon  sheets  of  the  same  ruling,  and  in  most  cases  it 
will  be  best  practice  to  keep  it  in  the  binder  with  the  general  fund  and  loan  fund  appropria- 
tions, using  a  tab  to  separate  the  sheets  from  those  of  the  two  other  ledgers. 

2.  Contract  Ledger. 

The  contract  ledger  will  contain  an  account  with  each  contract  awarded,  the  quantity, 
price  and  amount  of  each  line  of  goods  or  services  included  within  the  contract,  the  quantity 
and  amount  ordered,  the  quantity  and  amount  delivered,  the  invoices  vouchered  for  payment, 
the  balance  not  ordered,  and  the  balance  of  the  contract  which  has  not  been  vouchered. 

The  left-hand  page  of  the  contract  ledger  (Form  21)  provides  for  a  complete  record  of  the 
contract,  the  printed  form  at  the  head  indicating  the  particulars  that  are  to  be  recorded. 

Under  the  head  of  "Accounts  chargeable"  will  be  noted  the  several  general  fund,  loan 
fund  or  special  and  trust  fund  accounts  affected,  and  in  the  "Total"  column  the  amount  of 
the  contract,  chargeable  to  each.  The  four  blank  columns  immediately  following  the  word 
"total"  may  be  used  for  making  an  analysis  of  the  contract  amount  by  organization  units 
or  other  classifications.  Reduction  or  cancellation  of  the  amount  of  a  contract  will  be  noted 
in  red  ink  in  the  "Total"  column. 

As  orders  are  issued  against  a  contract  they  will  be  entered  under  the  head  of  "Orders 
issued,"  with  the  date,  number  and  estimated  amount.  Two  blank  columns  are  provided  in 
the  block  headed  "Orders  issued"  which  may  be  used  to  analyze  the  orders  according  to  or- 
ganization units  or  other  classification. 

Under  the  head  of  "Vouchers"  will  be  entered  the  date,  number  and  amount  of  voucher, 
and  on  the  same  line  imder  the  head  of  "Adjustments"  will  be  noted  the  difference  between 
the  original  order  and  the  amount  of  the  voucher.  On  the  same  line,  under  "Orders  liqui- 
dated," will  be  noted  the  original  amount  of  the  order  covered  by  the  voucher.  It  is  not  con- 
templated that  the  voucher  will  be  entered  on  the  same  line  as  the  original  entry  of  the  order 
in  the  column  to  the  left.  The  "Per  cent  Retained"  column  is  provided  for  noting  therein 
the  amount  of  any  contract  payment  retained  in  accordance  with  the  terms  of  the  contract. 
When  a  retained  payment  is  vouchered,  the  voucher  will  be  entered  in  the  register  of 
vouchers  in  the  same  manner  as  other  vouchers. 

The  difference  between  the  total  of  "Orders  issued"  and  the  total  of  "Orders  liquidated" 
will  show  at  all  times  the  amount  of  orders  unvouchered. 

The  right-hand  page  of  the  contract  ledger  (Form  21  A)  provides  for  the  details  of  the 
articles  or  services  contracted  for.  Following  the  caption  "Articles  or  services"  will  be  en- 
tered the  name  of  each  article  included  in  the  contract.  Tn  the  columns  opposite  the  words 
"Unit  of  measure"  will  be  indicated  the  unit  of  measure  of  each  article  mentioned  in  the  con- 
tract; for  instance,  if  the  article  is  "eggs"  the  unit  will  probably  be  "dozen,"  and  opposite 
"Unit  price"  will  be  shown  the  price  per  dozen.  Opposite  the  "Line  number"  will  be  shown 
the  number  of  the  line  in  the  contract,  and  opposite  "Quantity"  will  be  shown  the  quantity 
specified  in  the  contract 


DESCRIPTION    AND    USE    OF   DETAIL   LEDGEES.  25 

As  orders  are  issued  and  entered  on  the  left-hand  page  of  the  contract  ledger,  a  record 
of  the  quantity  of  same  will  also  be  made  on  the  right-hand  page  according  to  the  article  in 
the  colums  headed  "Ordered."  When  goods  are  received  they  will  be  noted  against  their 
proper  order  in  the  columns  headed  "Received."  This  record  will  thus  show  at  all  times  the 
quantity  ordered  of  a  given  article,  the  quantity  received,  and  the  balance  that  may  yet  be 
ordered  of  that  article. 

The  accounts  in  the  contract  ledger  may  be  arranged  alphabetically  by  names  of  contrac- 
tors or  in  any  other  manner  adapted  to  the  requirements  of  departments. 

3.  Claimant's  Ledger 

The  claimant's  ledger  for  departments  will  contain  an  account  with  each  vendor  or 
tradesman  who  has  received  orders  (not  under  contract)  for  the  delivery  of  goods  or  the  ren- 
dering of  service,  and  will  contain  a  detailed  record  of  each  order  issued,  each  invoice  vouch- 
ered  and  the  balance  not  vouehered  for  payment. 

This  book  (Form  22)  admits  of  entering  the  date,  number,  particulars  and  the  estimated 
cost  of  each  order.  The  column  headed  "Memo"  may  be  used  to  note  information  as  to  the 
dates  of  invoices,  etc.  As  vouchers  are  drawn  they  will  be  entered  under  the  head  of  "Vouch- 
ers," but  no  attempt  should  be  made  to  enter  a  voucher  on  the  same  line  on  which  the  order 
was  originall}'  entered.  If  the  voucher  amount  differs  from  the  estimated  amount  of  the  or- 
der, the  difference,  plus  or  minus,  is  noted  under  the  head  of  "adjustments"  on  the  same 
line  as  the  voucher  amount.  Under  the  caption  of  "Orders  liquidated,"  and  on  the  same  line 
as  the  voucher  entry,  will  be  shown  the  amount  of  the  order  as  originally  entered.  The  dif- 
ference then  between  the  accumulated  total  of  the  orders  originally  entered  and  the  accumu- 
lated total  of  the  orders  liquidated  will  be  the  amount  of  orders  unvouchered,  and  the  total 
of  the  schedule  of  balances  for  all  claimants'  accounts  will  agree  with  the  credit  balance  of 
"Reserve  for  open  market  orders"  in  the  general  ledger. 

4.  Expense  Ledger  (Forms  25  and  25  A). 

Expenses  are  (1)  the  accrued  costs,  paid  or  i)ayable,  of  the  services,  rents,  supplies  and 
materials  and  parts  obtained  by  or  for  the  city  for  administration  of  its  affairs  or  the  main- 
tenance and  operation  of  its  business  undertakings;  and  (2)  the  losses  incurred  by  it  in  such 
maintenance  and  operation. 

Administration  Expense  is  the  cost  of  direction  and  control  (including  salaries  and 
wages,  services  other  than  personal,  materials,  supplies,  etc.),  which  is  not  directly  allocable 
to  operation,  maintenance  or  capital  outlays.  These  expenses  only  apply  to  departments  or 
offices  which  are  wholly  executive  or  administrative  in  their  functions.  Such  offices  are 
those  of  the  mayor,  the  directors  of  the  executive  departments  of  the  city,  and  the  county 
offices. 

Operation  Expense  is  the  ordinary  running  expenses  of  the  city  government  (including 
salaries  and  Avages,  services  other  than  personal,  materials,  supplies,  etc.)  incident  to  the  cost 
of  conducting  the  current  services  performed  by  the  city. 

Maintenance  Expense  is  the  cost  incurred  for  repairs,  and  other  current  upkeep  (in- 
cluding salaries  and  wages,  services  other  than  personal,  material,  supplies,  etc.),  for  the 
preservation  of  municipal  properties.  The  reserve  for  replacements  is  to  be  charged  cur- 
rently to  "investment  of  the  city  (surplus) — capital  account"  (see  page  18,  last  paragraph). 

Fixed  Charges  are  the  costs  incurred  for  purposes  specifically  provided  by  law  or  which 
are  of  a  fixed  nature,  such  as  interest,  sinking  fund  payments,  rents,  insurance  and  taxes  paid 
to  other  civil  divisions. 

Other  Expenses  are  the  costs  incurred,  if  any,  for  expenses  of  a  miscellaneous  nature  that 
are  not  chargeable  to  any  of  the  specific  expense  headings  named  aibove.  Among  the  expenses 
to  be  classified  under  other  expenses  are:  (1)  educational  and  general  welfare  grants  and 
contributions;  (2)  subsidies  and  bounties;  (3)  burial  expenses;  (4)  gratuities;  (5)  pensions 
and  retirement  salaries;  (6)  losses. 

For  purposes  of  administration  and  budget  making  an  expense  ledger  is  one  of  the  most 
important  records  of  a  department,  since  it  enables  officials  to  obtain  an  accurate  and 
well  classified  statement  of  the  monthly  cost  of  operating  each  function  or  activity  under- 
taken or  performed. 

The  elements  of  expense  to  be  recorded  in  the  expense  ledger  are:  (1)  invoices  and 
payrolls  directly  chargeable  to  expense;  (2)  stores  issued;  (3)  work  in  progress  distributed; 
(4)  inter-departmental  services  received;  (5)  reserve  for  repairs. 

Invoices  and  payrolls  chargeable  to  expense  should  be  posted  to  their  respective  ac- 
counts in  the  expense  ledger  JO  accordance  with  the  expense  classification,  such  posting  to 


20  DaWBTPTION    Aim   TT8B    OF   DETAII,   I.EnOEBS. 

be  made  immediately  after  entry  of  the  invoice  or  payroll  in  the  register  of  invoices  and 
payrolls.  Where  stores  are  kept  and  issued  on  requisitions  and  the  number  of  requisitions 
in  each  month  is  small,  the  amount  of  each  requisition  will  be  posted  in  detail  in  the  expense 
ledger.  If  the  stores  requisitions  are  very  numerous,  the  postings  to  the  expense  ledger 
should  be  made  from  the  monthly  report  of  stores  issued,  which  statement  should  be  made 
in  accordance  with  the  expense  classification,  so  that  there  will  be  a  sinjfle  monthly  entry  in 
the  expense  ledger  to  eacTi  expense  sub-account  for  which  stores  have  '  lod  during  the 

month.     Stores  returned  to  storphouse  after  having  been  issued  on   i  ion  should  be 

credited  to  the  respective  expense  accounts  to  which  they  have  previously  been  charged. 
Completed  work  in  progress  of  an  expense  nature  should  be  taken  into  the  various  accounts 
affected  in  the  expense  ledger.  These  entries  are  made  from  the  work  in  progress  ledger. 
Services  or  materials  received  from  another  department  should  be  posted  from  the  inter- 
departmental invoices  to  the  various  accounts  in  the  expense  ledger  chargeable  therewith, 
providing  such  work  or  materials  are  of  an  expense  nature.  If  they  are  of  the  nature  of  per- 
manent improvements  and  equipment,  or  for  stores,  they  wotild  be  posted  to  the  property  or 
stores  ledgers. 

The  reserve  for  repairs  to  property  and  equipment  in  the  custody  of  a  department  or 
bureau  should  be  distributed  to  the  various  expense  accounts  from  the  register  of  reserves  for 
repairs  and  capital  depreciation.  The  form  of  the  expense  ledger  provide;,  an  account  for 
each  sub-account  of  the  expense  classification,  and  thus  furnishes  the  necessary  analysis  of  ex- 
penses incurred.  Few,  if  any,  credits  are  posted  to  this  ledger,  as  all  of  the  accounts  are 
normally  debits,  so  that  single  columns  are  provided  for  each  account.  The  few  credits  enter- 
ing into  this  ledger  are  entered  in  red  ink  in  the  debit  columns. 

A  schedule  of  balances  and  totals  should  be  taken  from  the  expense  ledger  monthly  and 
should  agree  in  total  with  the  balance  of  the  controlling  account  "expenses"  in  the  general 
ledger,  thereby  proving  the  accuracy  of  the  month's  postings  to  the  expense  ledger. 

Below  is  presented  an  outline  classification  of  expenses,  together  with  symbol  letters  for 
the  same  for  the  bureau  of  correction  of  the  department  of  public  safety  as  an  illustration  of 
the  classifications  of  expenses  to  be  used  by  the  various  departments  and  bureaus  in  con- 
nection with  the  expense  ledger : 

P— DEPARTMENT  OP  PUBLIC  SAFETY  (P— Protection). 
C— BUREAU  OF  CORRECTION  (C— Correction). 

Functions  or  Activities. 

G        General  Services: 

GC  Administration  (C — Executive  Control). 

GA  Accounts  and  records. 

GB  Care  of  buildings  and  grounds. 

GH  Heat  and  power  plant. 

GS  Store  department. 

GT  General  stables  (T — Transportation). 

P         Care  and  Support  of  Prisoners : 

PG  Guarding  and  housing  prisoners. 

PM  ^Tedical  care  of  prisoners. 

PF  Feeding  prisoners 

PK  Clothing  prisoners. 

PT  Transportation  of  prisoners. 

PJ  Janitorial  service. 

M       Manufacturing  and  other  production. 

MW  Manufacturing  gas  and  by-products. 

MK  Manufacturing  clothing  and  shoes. 

MT  Manufacturing  tinware. 

MS  Quarrying  stone  and  gravel. 

ML  Laundering. 

MB  Blncksmithing. 

MF  Farming. 

Characters  of  Expense. 
-  -  X  Operation. 
--Y        Maintenance. 


DESCRIPTION    AND    USE    OF    DETAIL   LEDQEES.  27 

Objects  of  Expense. 

A  Personal  service. 

B  Services  other  than  personal. 

C  Materials. 

D  Supplies. 

J  Contributions,  interest,  etc. 

K  Pensions,  etc. 

L  Losses  and  contingencies. 


DETAIL  EXPLANATION  OF  FUNCTIONAL  CLASSIFICATION  (on  previous  page). 

Detention  of  Petty  Offenders  {General  Function). 
Symbol. 

G         ''^  General  Service. 
GO  Administration. 

Includes  expenses  of  superintendent's  and  warden's  offices  and  apart- 
ments. 
GA  Accounts  and  Records. 

Includes  expenses  of  bookkeeping  and  statistical  work. 
GB  Care  of  Buildings  and  Grounds. 

Includes  expenses  of  carpenter,  painter,  stonemason,  plumber  and  tin- 
smith. 
GH  Heat  and  Power  Plant. 

Includes  expenses  of  engineer  and  fireman. 
GS  Store  Department. 

Includes  expenses  of  storekeeper. 
GT  General  Stables. 

Includes  expenses  of  house  stables. 
P  Care  and  Support  of  Prisoners. 

PG  Guarding  and  Housing  Prisoners. 

Includes  expenses  of  captain,  lieutenant,  guards,  matrons,  moral  instruc- 
tor, organist  and  bed  and  bedding. 
PM  Medical  Care  of  Prisoners. 

Includes  expenses  of  physician,  nurses  and  apothecary. 
PP  Feeding  Prisoners. 

Includes  expenses  of  kitchen  and  bakery. 
PK  Clothing  Prisoners. 

Includes  expenses  of  finished  articles  (clothing  and  shoes  and  repairs.) 
PT  Transportation  of  Prisoners. 

Includes  expenses  of  travel  of  officers  and  guards  and  moving  prisoners. 
PJ  Janitorial  Service. 

^^  Includes  expenses  of  labor  and  supplies  used  in  cleaning. 

M  Manufacturing  and  Other  Production. 

MW  Manufacturing  Gas  and  By-products. 

Includes  cost  and  expenses  of  manufacturing  of  gas  and  by-products. 
MK  Manufacturing  Clothing  and  Shoes. 

Includes  cost  and  expenses  of  manufacturing  clothing  and  shoes. 
MT  Manufacturing  Tinware. 

Includes  cost  and  expenses  of  labor  and  material  in  manufacturing  tin- 
ware. 
MS  Quarrying  Stone  and  Gravel. 

~  Includes  cost  and  expenses  of  operating  quarry  and  gravel  pit. 

ML  Laundering. 

Includes  cost  and  expenses  of  operating  laundry. 
MB  Blacksmithing. 

Includes  cost  and  expenses  of  blacksmithing. 
MP  Farming. 

Includes  cost  and  expenses  of  farming  and  gardening. 


28  DESOKIPTION    AND    D8E    OF  DSTAIL   LEDOl 

5.  Stores  Ledger  (Form  23). 

The  introduction  of  stores  ledgers  in  all  departments  will  be  required  whenever  supplies 
and  materials  are  handled  in  such  quantities  as  to  render  necessary  the  keeping  of  stores  ac- 
counts. 

It  is  desired  to  have  all  accounting  forms  and  reports  uniform  in  all  departments,  but  it 
will  not  be  insisted  upon  to  change  at  once  existing  forms  of  stores  ledger  which  may  be 
meeting  the  requirements  of  particular  departments.  Such  changes  may  be  made  at  a  later 
date  following  the  installation  of  the  other  departmental  accounting  forms.  But  all  depart- 
ments that  carry  stores  of  materials  and  supplies  must  keep  a  stores  ledger. 

With  the  introduction  of  stores  ledgers,  inventories  should  be  taken  at  the  beginning  of 
each  year,  or  more  frequently  if  desired,  and  schedules  of  balances  and  totals  of  these  ledgers 
prepared  at  the  end  of  each  month  in  order  that  the  stores  balances,  as  shown  in  the  ledgers, 
may  be  proved  to  the  controlling  account  "Stores"  in  the  general  ledger.  The  accuracy  of  the 
stores  ledger  will  thereby  be  subject  to  the  double  check  of  trial  balance  and  inventory  con- 
trol. The  total  of  charges  to  "Stores"  account  in  the  general  ledger  is  to  be  established 
through  the  invoices;  the  total  of  credits  to  "Stores"  is  to  be  established  through  signed 
requisitions  and  storekeepers'  reports;  and  the  balance  of  "Stores"  is  to  be  checked  both  by 
inventory  and  schedule  of  balances  and  totals. 

6.  Work  in  Progress  Ledger. 

The  purpose  of  the  work  in  progress,  or  job,  ledger  is  to  keep  separate  accounts  for  show- 
ing the  cost  of  any  work  in  the  nature  of  maintenance  or  of  extensions  (improvements)  for 
which  it  is  thought  useful  to  have  available  at  any  time  the  detailed  cost  to  date.  It  provides 
a  separate  account  for  each  job  in  progress.  The  accounts  in  the  work  in  progress,  or  job, 
ledger  are  posted  from  the  original  documents,  payrolls,  invoices,  requisitions  on  stores  (or 
monthly  reports  of  stores  issued),  etc.,  similar  to  the  method  of  posting  the  expense  and  prop- 
erty ledgers.  The  ruling  of  the  work  in  progress,  or  job  ledger,  is  similar  to  that  of  the 
expense  ledger.  As  practically  all  the  entries  are  debits,  a  single  column  is  sufficient  for 
each  account.  About  the  only  credits  to  the  work  in  progress  ledger  are  adjustments  and  en- 
tries transferring  the  balances  of  these  accounts  to  the  expense  ledger  or  the  property  ledger. 
Distribution  of  work  in  progress  is  obtained  by  posting  from  the  monthly  report  of  work  in 
progress  completed.  Accounts  showing  debit  balances  are  those  which  have  not  yet  been 
distributed. 

A  schedule  of  balances  should  be  taken  from  the  work  in  progress  ledger  monthly  and 
should  agree  with  the  controlling  account  "  work  in  progress"  in  the  general  ledger,  thereby 
proving  the  accuracy  of  the  month's  postings  in  the  work  in  progress  ledger. 

7.  Property  Ledger. 

Outlays  are  the  accrued  costs,  paid  or  payable,  for  lands,  structures,  non-structural  im- 
provements and  equipment,  including  all  properties  of  a  more  or  less  permanent  character, 
and  thus  available  for  continuing  use,  which  are  obtained  or  used  by  the  city  in  the  exercise 
of  its  governmental  functions,  or  in  connection  with  the  business  undertakings  conducted 
by  it. 

The  property  ledger  provides  for  a  detailed  analysis  of  the  land,  structures,  non-struc- 
tural improvements  and  equipment  of  the  department  or  bureau  in  accordance  with  the  uni- 
form property  classification.  It  provides  a  sub-account  for  each  heading  of  the  property 
classification.  To  open  the  property  ledger  an  inventory  of  all  land,  structures,  non-struc- 
tural improvements  and  equipment  should  be  taken  at  cost  value  and  classified  accord- 
ing to  the  property  classification  mentioned  above.  This  grouping  should  be  by:  (1)  de- 
partment or  bureau  charged  with  the  property,  by  (2)  functional  use  of  the  property,  and 
by  (3)  kind  of  property.  The  sub-divisions  or  accounts  of  the  last  group,  viz.,  kind  of 
property,  will  be  found  in  the  city's  property  code  established  by  the  city  controller's 
office.  There  should  be  posted  to  the  respective  accounts  of  the  property  ledger  direct  from 
the  distribution  of  expenditures  on  the  invoices  and  payrolls  any  expenditures  for  the  ac- 
quisition of  property  or  equipment  other  than  replacements,  which  are  chargeable  to  invest- 
ment of  the  city  (surplus) — capital  account. 

The  form  of  the  property  ledger  is  similar  to  that  of  the  expense  ledger.  The  sub- 
accounts being  all  debits,  single  columns  are  provided,  and  if  there  are  any  credit  entries  they 
should  be  made  in  red  ink  in  the  debit  columns.  Property  and  equipment  that  might  occa- 
sionally be  disposed  of  would  be  about  the  only  credits  in  the  property  ledger. 


DESCRIPTION    AND    USE    OF   DETAIL    LEDGERS.  29 

A  sehedule  of  balances  of  the  property  ledger  at  the  close  of  each  month  would  show 
the  amount  of  property  and  equipment  on  hand,  and  should  prove  to  the  controlling  account 
"land,  structures,  other  improvements  and  equipment"  in  the  general  ledger.  The  schedule  of 
balances  and  totals  of  the  property  ledger  should  be  verified  from  time  to  time  by  cheeking 
it  with  an  actual  inventory  of  property  and  equipment. 

8.  Beserves  for  Repairs  and  Capital  Depreciation  Ledger. 

This  ledger  provides  for  a  detailed  analysis  by  classes  of  property  and  equipment  of  the 
reserves  set  aside  each  month  for  repairs  and  for  capital  depreciation.  These  reserves  should 
not  be  figured  on  each  property  account,  but  upon  classes  of  property  and  equipment  so 
grouped  that  all  property  similar  in  nature  having  the  same  estimated  rate  for  cost  of  repairs 
or  cost  of  replacement  will  be  in  the  same  class.  The  register  of  reserves  for  repairs  and  cap- 
ital depreciation  furnishes  the  monthly  amounts  of  the  reserves  to  be  set  aside  for  each  class 
of  property  and  equipment. 

The  debits,  as  well  as  the  credits  to  the  accounts  in  this  ledger,  being  fairly  numerous, 
the  ordinary  ledger  ruling  is  probably  best  adapted  to  its  requirements.  Two  accounts  should 
be  opened  for  each  class  of  property,  one  being  for  reserve  for  repairs  and  the  other  for  re- 
serve for  capital  depreciation. 

Each  account  heading  should  show  (1)  the  title  or  other  designation  of  the  property 
class;  (2)  the  total  cost  value  of  the  property  in  that  class;  (3)  the  estimated  required  per- 
centages of  reserve  for  repairs  or  for  capital  depreciation  (in  the  one  account,  this  percentage 
being  for  the  reserve  for  repairs,  and  in  the  other  for  capital  depreciation).  Changes  in  the 
total  cost  value  of  the  property  in  each  class  are  to  be  noted  in  total  each  month  by  taking 
from  the  property  ledger  the  total  acquisitions  and  dispositions,  together  with  any  adjust- 
ments and  by  extending  the  resulting  new  balance. 

The  accounts  in  this  ledger  should  be  credited  respectively  with  the  monthly  reserves  as 
determined  by  means  of  the  register  for  repairs  and  capital  depreciation.  Expenditures  for 
repairs  are  to  be  debited  to  the  reserve  accounts  for  repairs,  and  expenditures  for  replace- 
ments are  to  be  debited  to  the  reserve  accounts  for  capital  depreciation.  Any  credit  balances 
in  the  reserves  for  repairs  accounts  represent  the  excess  of  the  reserves  set  aside  for  repairs 
in  accordance  with  the  estimated  rates  thereof  over  and  above  the  actual  expenditures  for  re- 
pairs. Actual  repairs  are  made  more  or  less  irregularly  as  needed.  The  reserves  for  repairs 
account  makes  possible  the  charging  of  an  average  amount  to  expense  for  repairs  in  each  ac- 
counting period.  It  thereby  makes  a  more  even  distribution  of  repairs  to  expense  and  guards 
against  the  necessity  of  charging  extraordinarily  heavy  repairs  to  expense  in  any  accounting 
period.  Any  credit  balances  in  the  capital  depreciation  accounts  represent  legerve  for  future 
replacements  to  offset  capital  depreciation  that  has  taken  place. 

In  some  of  the  smaller  departments  and  bureaus,  where  the  property  classification  is  not 
an  extensive  one,  it  may  be  found  practicable  to  keep  the  reserves  for  repairs  and  capital  de- 
preciation ledger  in  the  back  of  the  property  ledger,  although  the  single  column  ruling  of  the 
property  ledger  would  necessitate  a  considerable  number  of  red  ink  entries,  the  debits  as 
well  as  the  credits  being  quite  numerous  in  this  ledger.  Numerous  changes  in  the  balances  of 
property  in  each  class  would  also  cause  difficulty  in  using  the  property  ledger  ruling. 

A  schedule  of  balances  and  totals  should  be  taken  from  this  ledger  monthly,  and  should 
agree  with  the  balances  of  the  controlling  accounts  "reserve  for  repairs — general  account" 
and  "reserve  for  capital  depreciation — capital  account"  in  the  general  ledger,  thereby  prov- 
ing the  accuracy  of  the  postings  to  this  ledger. 

9.  Revenue  Ledger. 

The  ruling  of  the  revenue  ledger  is  similar  to  that  of  the  expense  ledger,  one  important 
distinction  being  that  all  of  the  sub-accounts  are  credit  accounts,  whereas  in  the  expense  led- 
ger all  of  the  sub-accounts  are  debit  accounts.  Debits  to  the  revenue  ledger  are  as  rare  as 
credits  to  the  expense  ledger,  so  that  a  single  column  for  each  sub-account  is  usually  suffi- 
cient, the  few  debit  entries  arising  being  made  in  red  ink  in  the  credit  columns. 

Sub-accounts  are  opened  in  the  revenue  ledger  in  accordance  with  the  revenue  classifica- 
tion, the  purpose  of  this  ledger  being  to  provide  the  most  useful  and  instructive  classification 
of  the  revenues  of  a  department  or  bureau.  Postings  to  the  revenue  ledger  are  made  from 
the  bills  rendered  or  other  documentary  evideuce  of  the  accrual  of  revenue. 

A  schedule  of  balances  should  be  taken  from  the  revenue  ledger  monthly,  and  should 
agree  in  total  with  the  balance  of  the  controlling  account  revenue  in  the  general  ledger, 
thereby  proving  the  accuracy  of  the  month's  postings  to  the  revenue  ledger. 


CHAPTER  V 

DESCRIPTION  AND  USE  OF  GENERAL  LEDGER,  GENERAL  JOURNAL  AND 

GENERAL  JOURNAL  ENTRIES. 

General  Ledger. 

The  general  ledger  is  a  record  to  be  used  for  purposes  of  administrative  and  account- 
ing control.  Its  accounts  enable  the  bookkeeper  to  prepare  summary  statements  show- 
ing financial  condition,  operating  results  and  condition  of  funds.  Information  in  detail  sup- 
porting many  of  the  accounts  of  the  general  ledger  is  obtainable  from  the  schedules  of 
balances  of  the  various  detail  ledgers.  The  accounts  carried  on  the  general  ledger  are  mainly 
accounts  controlling  subsidiary  ledgers.  These  accounts  contain  totals  and  balances  to  which 
the  totals  and  balances  of  each  subsidiary  ledger  must  prove.  The  general  ledger  should  be 
kept  by  the  person  who  is  responsible  for  the  administration  of  the  accounts  of  the  depart- 
ment or  bureau  and  for  the  accuracy  of  the  postings,  footings  and  balances  in  the  subsidiary 
ledgers.  The  totals  of  the  general  ledger  being  independently  arrived  at,  the  book  is  a 
device  for  holding  each  clerk  responsible  for  competent  and  faithful  service.  The  method 
employed  for  obtaining  these  totals  and  balances  independently  is  to  take  the  postings  from 
the  totals  of  the  registers  in  which  the  documents  representing  transactions  are  recorded, 
while  the  subsidiary  ledgers  are  posted  independently  from  the  documents.  Assuming  that 
the  entries  and  footings  are  correct,  therefore,  the  totals  and  balances  of  a  general  ledger  ac- 
count represent  the  totals  of  the  schedule  of  balances  and  totals  of  a  subsidiary  ledger. 

Standard  Accounts  for  the  General  Ledger  of   an   Operating  Department  or   Bureau    (a 
Bureau  in  the  Department  of  Public  Safety  Used  as  an  Illustration). 

PROPRIETARY  ACX^OUNTS. 
General  Account. 
Deiit  Accounts. 

(1)  Cash  and  cash  items. 

(2)  Accounts  receivable. 

(3)  Stores. 

(4)  Work  in  progress. 

(5)  Crop  of  191 

(6)  Manufactured  goods. 

(7)  Revenues  accrued,  not  due. 

(8)  Unaccrued  expenses. 

(9)  Advances  to  capital  account. 

(10)  City  Treasurer. 

(11)  Receiver  of  Taxes. 

(12)  Expenses. 

(13)  Operation  account  (closing). 

Credit  Accounts. 

(14)  Invoices  and  payrolls  payable — Safety. 
(14A)  Invoices  payable — Supplies. 

(15)  Invoices  sent  to  department  of  supplies. 

(16)  Vouchers  sent  to  city  controller. 

(17)  Advances  from  capital  account. 

(18)  Reserve  for  repairs. 

(19)  Expenses  accrued,  not  due. 

(20)  Unaccrued  revenues. 

(21)  Investment  of  the  city. 

(22)  Revenues. 

30 


general  ledgek^  general  journal  and  general  journal  entries.  31 

Capital  Account. 

Debit  Accounts. 

(23)  Cash  and  cash  items. 

(24)  Work  in  progress. 

(25)  Land,  structures,  other  improvements  and  equipment. 

(26)  Advances  to  general  account. 

Credit  Accounts. 

(27)  Invoices  and  payrolls  payable — Safety. 
(27A)  Invoices  payable — Supplies. 

(28)  Invoices  sent  to  department  of  supplies. 

(29)  Vouchers  sent  to  city  controller. 

(30)  Advances  from  general  account. 

(31)  Eeserve  for  capital  depreciation. 

(32)  Investment  of  the  city. 

Special  and  Trust  Accounts. 
Deiit  Accounts. 

(33;   Cash  and  cash  items.  -  ~ 

(34)  Accounts  receivable. 

(35)  Securities  and  other  personal  properties  in  trust. 

(36)  Land,  structures,  other  improvements  and  equipment. 

Credit  Accounts. 

(37)  Deposits. 

(38)  Invoices  payable. 

(39)  Vouchers  sent  to  city  controller. 

(40)  Reserves  for  trust  beneficiaries. 

FUND  ACCOUNTS. 

General  Fund. 

Deiit  Accounts. 

(41)  Budget  allowance — Safety. 

(42)  Budget  allowance — Supplies. 

Credit  Accounts. 

(43)  Unencumbered  balance  of  appropriations — Safety. 

(44)  Unencumbered  balance  of  appropriations — Supplies. 

(45)  Eeserve  for  contracts — Safety. 

(46)  Reserve  for  contracts — Supplies. 

(47)  Reserve  for  open  market  orders — Safety. 

(48)  Reserve  for  open  market  orders— Supplies. 

Loan  Funds. 

Deiit  Accounts. 

(49)  Budget  allowance — Safety. 

(50)  Budget  allowance — Supplies. 

Credit  Accounts. 

(51)  Unencumered  balance  of  appropriations — Safety. 

(52)  Unencumbered  balance  of  appropriations — Supplies. 

(53)  Reserve  for  contracts — Safety. 

(54)  Reserve  for  contracts — Supplies. 

(55)  Reserve  for  open  market  orders — Safety. 

(56)  Reserve  for  open  market  orders — SuppMes. 

Spectal  and  Trust  Funds. 
Debit  Accounts. 

(57)  Budget  allowance — Safety. 

(58)  Budget  allowance — Supplies. 


32  GENERAL  LEDOEB,  OKNERAI.  JOUUNAI.  AND  QENEBAI.  JOURNAL  ENTRnH. 

Credit  Accounts. 

(59)  Unencumbered  balance  of  appropriations — Safety. 

(60)  Unencumbered  balance  of  appropriations — Supplies. 

(61)  Reserve  for  contracts — Safety. 

(62)  Reserve  for  contracts — Supplies. 

(63)  Reserve  for  open  market  orders — Safety. 

(64)  Reserve  for  open  market  orders — Supplies. 

General  Journal. 

The  general  journal  is  the  medium  through  which  the  general  ledger  is  posted. 

The  amounts  for  the  standard  monthly  entries  in  the  general  journal  are  obtained  in 
practically  every  instance  from  monthly  totals  of  the  various  registers.  In  cases  where  trans- 
actions affecting  the  general  ledger  do  not  belong  to  a  class  that  is  sufficiently  numerous  to 
require  a  register,  the  general  journal  entry  is  made  direct  from  the  document  or  other  evi- 
dence showing  the  particulars  of  the  transaction  and  the  amount  involved.  Some  of  the 
standard  journal  entries  will  probably  be  found  to  be  inactive  during  certain  months  by 
some  departments  and  bureaus  owing  to  no  transactions  of  the  class  represented  by  a  par- 
ticular journal  entry  occurring  during  the  month.  Also,  certain  portions  of  some  of  the  jour- 
nal entries  will  be  inactive  in  some  months  owing  to  there  being  no  transactions  affecting 
those  portions  although  other  portions  of  the  journal  entry  are  active. 

In  cases  of  this  kind,  when  working  witli  printed  journal  entries,  the  entire  journal  entry 
should  be  ruled  out  in  any  month  that  it  is  inactive,  and  any  inactive  accounts  of  an  active 
journal  entry  should  be  similarly  ruled  out.         .'- 

As  soon  as  the  monthly  journal  entries  are  dutermined  these  are  to  be  entered  in  a  bound 
book  or  on  loose  leaves  kept  in  a  loose  leaf  binder.  It  is  believed  that  it  will  be  found  desirable 
for  each  department  and  bureau  to  have  printed  its  standard  monthly  journal  entries  arranged 
for  binding  in  a  loose  leaf  binder.  A  certain  number  of  blank  journal  entry  sheets  should  also 
be  provided  for  opening  and  closing  journal  entries  and  monthly  entries  of  a  special  nature 
not  included  in  standard  entries. 

General  Journal  Entries. 

STANDARD  OUTLINE  MONTHLY  GENERAL  JOURNAL  ENTRIBS 
FOR  AN  OPERATING  DEP^iRTMBNT  OR  BUREAU. 

The  following  outline  journal  entries  are  for  study  and  illustrative  purposes  only.  The 
detail  general  journal  entries  (see  page  36)  are  for  actual  use. 

1 — Budget  Allowance 

To    Unencumbered  Balance  of  Appropriations 
P^or  appropriations  of  City  Councils  to  this  department  or  bureau  (from  Register  of  Ap- 
propriation Ordinances*). 

2 — Unencumbered  Balance  of  Appropriations 
To    Reserve  for  Contracts 
For  contracts  entered  into  during  the  month  (from  Register  of  Contracts). 

3 — Unencumbered  BsJance  of  Appropriations 
To    Reserve  for  Open  Market  Orders 
For  open  market  orders  issued  during  the  month  (from  Register  of  Orders). 

4 — Expenses 

Reserve  for  Repairs 

Work  in  Progress 

Land,  Structures,  other  Improvements  and  Equipment 

To    Stores 
For  stores  issued  from  storehouse  during  the  month  on  stores  requisitions  (from  Register 
of  Stores  Requisitions). 


•In  most  cMRs  a  total  for  the  month,  of  nppropriatlons  by  City  Connrllfi  to  any  drpartmrnt   or 
bureau,   may   be   Beourod  without  the  use  of   a   register. 


GENERAL  LEDGER^  GENERAL  JOURNAL  AND  GENERAL  JOURNAL  ENTRIES. 


33 


5 — Expenses 

Reserve  for  Repairs 

Land,  Structures,  other  Improvements  and  Equipment 

To    Work  in  Progress 
For  distribution  of  completed  work  in  progress   (from  Register  of  Completed  "Work  in 
Progress). 

6 — Expenses 

Reserve  for  Repairs 

Investment  of  the  City 

Stores 

Work  in  Progress 

Land,  Structures,  other  Improvements  and  Equipment 

Reserve  for  Capital  Depreciation  (Replacements) 
To    Invoices  and  Payrolls  payable 

For  distribution  by  character  of  expenditure  of  invoices  and  payrolls  for  all  personal  ser- 
vice, services  other  than  personal,  materials,  supplies,  etc.,  purchased  and  received  during  the 
month  (from  Register  of  Invoices). 

7 — Invoices  and  Payrolls  Payable 

To    Vouchers  sent  to  City  Controller 
For  invoices  and  payrolls  vouchered  and   sent   to   City   Controller    (from   Register   of 
Vouchers). 

8 — Invoices  and  Payrolls  Payable 

To    Invoices  sent  to  Department  of  Supplies 

For  invoices — for  materials  and  supplies  ordered  by  the  Department  of  Supplies  and  re- 
ceived by  the  operating  department  and  bureau — sent  to  Department  of  Supplies  to  be  vouch- 
ered, approved  and  certified  to  the  City  Controller  (from  Register  of  Invoices  sent  to  Depart- 
ment of  Supplies). 

7a  and  8a — Unencumbered  balance  of  Appropriations 
Reserve  for  Contracts 
Reserve  for  Open  Market  Orders 
To    Budget  Allowance 
Collateral  to  journal  entries  Nos.  7  and  8  (from  same  source  as  those  journal  entries). 

9 — Receiver  of  Taxes 
To    Revenues 

For  income  accrued — ^bills  having  been  rendered  therefor  by  the  operating  department  or 
bureau — the  collections  of  cash  thereon  to  be  made  by  the  Receiver  of  Taxes  (from  the  Reg- 
ister of  Revenue  Accrual). 

10 — Expenses 

To    Reserve  for  Repairs 

For  monthly  proportion  of  reserve  for  repairs  (from  Register  of  Reserves  for  Repairs  and 
Capital  Depreciation). 

11 — Investment  of  the  City 

To    Reserve  for  Capital  Depreciatio-n 

For  monthly  proportion  of  capital  depreciation  (from  the  Register  of  Reserves  for  Re- 
pairs and  Capital  Depreciation). 

12 — Reserve  for  Capital  Depreciation 
Investment  of  the  City 

To    Land,  Structures,  other  Improvements  and  Equipment 

For  the  cost  value  of  property  worn  out  and  disposed  of  (in  cases  where  no  cash  is  real- 
ized) investment  of  the  City  being  charged  direct  with  that  portion  of  the  cost  value  for  which 
a  reserve  has  not  been  provided. 

Note. — If  some  cash  is  realized  from  the  disposition  of  old  property  and  equipment,  the 
above  journal  entry  would  be  used  with  an  additional  debit,  namely,  "Cash." 


34  QENEKAL  LEDOEB^  OBNEEAL  JOUBNAL  ANU  OKNEEAL  JOUU5AL  ZHTSm. 

STANDARD  OUTLINE  MONTHLY  GENERAL  JOURNAL  ENTRIES 
FOR  THE  DEPARTMENT  OP  SUPPLIES. 

Entries  number  1,  2,  3,  6,  7,  7a,  9,  10,  11  and  12  of  the  standard  outline  monthly  general 
journal  entries  for  an  operating  department  or  bureau  (see  above)  will  be  used  by  the  de- 
partment of  supplies.    In  addition  this  department  will  use  the  following: 

Invoices  received  from  Departments  and  Bureaus 
To    Invoices  Payable. 

For  invoices  received  from  the  several  operating  departments  and  bureaus,  representing 
materials  and  supplies  ordered  by  the  department  of  supplies  for  other  departments  and 
bureaus  (from  Register  of  Schedules  of  Invoices  sent  to  Department  of  Supplies). 

STANDARD  OUTLINE  GENERAL  JOURNAL  ENTRIES  FOR 
OPENING  NEW  SET  OF  BOOKS. 

1 — Stores  (as  per  inventory) 

Work  in  Progress  (as  per  inventory) 
Land,  etc.  (as  per  inventory) 

To    Invoices  and  Payrolls  Payable 
Reserve  for  Repairs 
Reserve  for  Capital  Depreciation 
Investment  of  the  City 

For  taking  upon  the  books  all  of  the  assets,  liabilities  and  reserves  of  the  City,  and  the 
excess  of  assets  over  liabilities  and  reserves,  the  excess  being  the  investment  of  the  City  in 
the  operating  department,  bureau  or  institution. 

2 — Budget  Allowance 

To    Unencumbered  Balance  of  Appropriations 
Reserve  for  Contracts 
Reserve  for  Open  Market  Orders 

For  taking  upon  the  books  the  unexpended  portion  of  the  budget  allowance,  together 
with  its  distribution  between  unencumbered  balance  of  appropriations,  unexpended  portions 
of  contracts,  and  unexpended  portions  of  open  market  orders  outstanding. 

The  department  of  supplies  will  use  as  much  of  journal  entry  No.  1  for  opening  a  new 
set  of  books  as  is  necessary  to  take  upon  its  general  ledger  the  assets,  liabilities,  reserves  and 
investment  of  the  city,  in  its  custody.  It  will  also  use  journal  entry  No.  2  for  its  fund  ac- 
counts the  same  as  an  operating  department  or  bureau. 

STANDARD  OUTLINE  GENERAL  JOURNAL  ENTRIES  FOR 
CLOSING  AT  END  OF  YEAR 

1 — ^Revenues 

To    Operation  Account 
For  closing  revenue  account  at  the  end  of  the  year. 

2 — Operation  Account 
To    Expenses 

For  closing  expense  account  at  the  end  of  the  year. 

3 — Vouchers  sent  to  City  Controller 

Invoices  sent  to  Department  of  Supplies 
To    Operation  Account 
Receiver  of  Taxes 
Investment  of  the  City 

For  closing  the  nominal  accounts  to  "Investment  of  the  City"  at  the  end  of  the  year. 


GENERAL  LEDGER^  GENEEAL  JOUENAL  AND  QENEEAL  JOURNAL  ENTRIES.  35 

4 — Unencumbered  Balance  of  Appropriations 
To    Budget  Allowance 

For  merging  balances  of  appropriations  at  close  of  year. 

The  department  of  supplies  will  use  journal  entries  No.  1,  2  and  4  (as  above)  for  closing 
its  books  at  the  end  of  the  year.  It  will  use  general  journal  entry  No.  3  in  the  following 
modified  form : 

Vouchers  sent  to  City  Controller 

To     Invoices  received  from  Departments  and  Bureaus 
Receiver  of  Taxes 
Operation  Account 
Investment  of  the  City 


36  ORNKRAL  LEDGKIt.  OEMKBAT.  JOURNAL  AND  OKNEBAI.  JOUBHAL  E: 


OPENING  GENERAL  JOURNAL  ENTRIES-JANUARY  1,  191_ 
(WHIW  OPENING  NEW  SET  OF  BOOKS.)* 

These  detail  general  journal  entries  are  for  actual  departmental  use.  The  oatline  journal 
•mtries  (see  page  32)  are  for  study  and  illustrative  purposes  only. 

In  this  chapter  and  chapter  III  the  words  "safety"  and  "supplies"  have  been  nsed  in 
journal  entries  to  distinguish  ])etween  appropriations  and  transactions  incident  thereto  of  an 
operating  department  or  bureau  and  the  department  of  supplies.  The  word  "safety"  as  the 
short  departmental  title  of  the  department  of  public  safety  is  used  for  illustration  purposes. 
In  practice,  the  short  title  of  the  department  or  bureau  for  which  the  general  journal  entries 
are  formulated  would  be  substituted. 

1 — Budget  Allowance — Safety — General  Fund 

Budget  Allowance — Supplies — General  Fund 

Budget  Allowance — Safety — Loan  Funds 

Budget  Allowance — Supplies — Loan  Funds 

To    Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
Unencumbered  Balance  of  Appropriations — Supplies — General  Fund 
Reserve  for  Contracts — Safety — General  Fund 
Reserve  for  Contracts — Supplies — General  Fund 
Reserve  for  Open  Market  Orders — Safety — General  Fund 
Reserve  for  Open  Market  Orders — Supplies — General  Fund 
Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds 
Reserve  for  Contracts — Safety — Loan  Funds 
Reserve  for  Contracts — Supplies — Loan  Funds 
Reserve  for  Open  Market  Orders — Safety — Loan  Funds 
Reserve  for  Open  Market  Orders — Supplies — Loan  Funds 

For  taking  upon  the  books  all  non-merging  balances  of  appropriations  brought  forward 
from  the  previous  year. 

2 — Stores — General  Account 

Work  in  Progress — General  Account 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account 
To    Invoices  Payable — General  Account 
Investment  of  City — General  Account 
Invoices  Payable — Capital  Account 
Investment  of  City — Capital  Account 

For  taking  up  the  inventories  of  the  above  debit  accounts,  the  invoices  payable  at  the 

opening  of  business,  January  1,  191 — ,  and  the  investment  of  the  city  in  the 

Hureau. 

3 — Budget  Allowance — Safety — General  Fund 
Budget  Allowance — Supplies — General  Fund 

To    Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
Unencumbered  Balance  of  Appropriations — Supplies — General  Fund 

For  taking  upon  the  books  the  general  appropriations  to  the ^Bureau  for 

191—. 


*In  fonnulatinjif  these  journal  entries,  fund  and  proprietary  journal  entries  for  special  and  trust 
transactions  have  been  omitted.  Should  a  department's  transactions  include  those  of  a  special  and 
trust   nature,   it  should   utilize  titles  similar  to  those  here  used  for  the  other  funds  and  accounts. 


GENERAL  LEDGEK,  GENERAL  JOURNAL  ANU  GENERAL  JOURNAL  ENTRIES.  37 

MONTHLY  GENERAL  JOURNAL  ENTRIES. 

For  the  month  of 191 

1 — Budget  Allowance — Safety — General  Fund 
Budget  Allowance — Supplies — General  Fund 
Budget  Allowance — Safety — Loan  Funds 
Budget  Allowance — Supplies — Loan  Funds 

To    Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
Unencumbered  Balance  of  Appropriations — Supplies^ — General  Fund 
Unencumbered  Balance  of  Appropriations — Safety — ^Loan  Funds 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds 

For  taking  upon  the  books  any  appropriations,  or  allotments  made  to — Bureau 

during  the  month  of. 191 — . 

2 — Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
Unencumbered  Balance  of  Appropriations — Supplies — General  Fund 
Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds 
To     Reserve  for  Contracts — Ssrfety — General  Fund 
Reserve  for  Contracts — Supplies — General  Fund 
Reserve  for  Open  Market  Orders — Safety — General  Fund 
Reserve  for  Open  Market  Orders — Supplies — General  Fund 
Reserve  for  Contracts — Safety — Loan  Funds 
Reserve  for  Contracts — Supplies — Loan  Funds 
Reserve  for  Open  Market  Orders — Safety — Loan  Funds 
Reserve  for  Open  Market  Orders — Supplies — Loan  Funds 
For  contracts  (as  per  register  of  contracts)  and  open  market  orders  (as  per  register  of 
orders)  registered  and  issued  during  month  of 191 — . 

3 — Reserve  for  Contracts — Safety — General  Fund 
Reserve  for  Contracts — Supplies — General  Fund 
Reserve  for  Contracts — Safety — ^Loan  Funds  _ 

Reserve  for  Contracts — Supplies — Loan  Funds 
Reserve  for  Open  Market  Orders — Safety — General  Fund 
Reserve  for  Open  Market  Orders — Supplies — General  Fund 
Reserve  for  Open  Market  Orders — Safety — ^Loan  Funds 
Reserve  for  Open  Market  Orders — Supplies — Loan  Funds 

To    Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
Unencumbered  Balance  of  Appropriations — Supplies — General  Fund 
Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds 
For  reductions,  cancellations  or  annnllments  in  contracts  and  open  market  orders  for  the 
month  of 191 — . 

4 — Expenses — General  Account 

Reserve  for  Repairs — General  Account  V-^ 

Accounts  Receivable — General  Account 
Work  in  Progress — General  Account 
Inter-departmental  Services — General  Account 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account. 
To    Stores — General  Account 

For  materials  delivered  from  storehouses  o   storerooms  during  month  of 

191—. 

5 — Stores — General  Account 

To    Expenses — General  Account 

Reserve  for  Repairs — General  Account 
Accounts  Receivable — General  Account 
Work  in  Progress — General  Account 
Inter-departmental  Services — General  Account 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account 
For  materials  returned  to  storehouses  or  storerooms  during  month  of. 191 — . 


38  OKNKHAL   LEDOKR,    OKNEBAI.   JOtTHNAI,   AND   OEWEBAI.   JOUHJCAI.  JTSTTRnak 

6 — Expenses — General  Account 

Eeserve  for  Repairs — General  Account 

Stores — General  Account 

Accounts  Receivable — General  Account 

Work  in  Progress — General  Account 

Inter-departmental  Services — General  Account 

Land,  Structures,  other  Improvements  and  Equipment— Capital  Account 

Reserve  for  Capital  Depreciation — Capital  Account 

To    Invoices  and  Payrolls  Payable — Safety — General  Account 
Invoices  Payable — Supplies — General  Account 
Invoices  and  Payrolls  Payable — Safety— Capital  Account 
Invoices  Payable — Supplies — Capital  Account 
For  invoices  and  payrolls  rf^gistered  during  month  of. 191 — . 

7 — Expenses — General  Account 

Reserve  for  Repairs — General  Account 
Accounts  Receivable — General  Account 
Inter-departmental  Services — General  Account 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Acconnt 
To    Work  in  Progress — General  Account 
For  distribution  of  work  in  progress  completed  during  month  of 191 — . 

8 — Expenses — General  Account 

Reserve  for  Repairs — General  Account 

Stores — General  Account 

Work  in  Progress — General  Account. 

Land,  Structures,  other  Improvements  and  Equipment — Capital  Account 

To    Inter-departmental  Services — General  Account 
For  services  or  materials  received  by  a  department  from  another  department  (for  which 

reimbursement  will  not  be  made)  during  the  month  of 191 — . 

Note. — Expense  is  debited  for  services  or  materials  used  for  running  expenses;  reserve 
for  repairs,  for  services  or  materials  used  in  maintaining  (repairing)  property;  stores,  for 
goods  received  and  taken  into  stores ;  work  in  progress,  for  work  in  progress  transferred ;  and 
land,  structures,  etc..  for  property  transferred. 

9 — Advances  to  Capital  Account — General  Account 

To    Advances  from  General  Account — Capital  Account 
For  the  net  use  of  general  account  moneys  for  permanent  improvements  during  the  month 

of 191—. 

or 

9a — Advances  from  General  Account — Capital  Account 

To    Advances  to  Capital  Account — General  Account 

For  the  net  use  of  loan  funds  moneys  for  current  expense  during  the  month  of 

191—. 

10 — Invoices  and  Payrolls  Payable — Safety — General  Account 
Invoices  Payable — Supplies — General  Account 
Invoices  and  Payrolls  Payable — Safety — Capital  Account 
Invoices  Payable — Supplies — Capital  Account 

To    Vouchers  seht  to  City  Controller — Safety— General  Account 
Vouchers  sent  to  City  Controller— Safety — Capital  Account 
Invoices  sent  to  Department  of  Supplies — General  Account 
Invoices  sent  to  Department  of  Supplies — Capital  Account 
For  vouchers  sent  to  City  Controller  and  invoices  sent  to  Depart ment  of  Supplies  during 
m  onth  of 191—. 

11 — Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
Unencumbered  Balance  of  Appropriations — Supplies — General  Fund 
Unencumbered  Balance  of  Appropriations — Safety — ^Loan  Funds 
Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds 
Reserve  for  Contracts— Safety — General  Fund 


GENEEAL  LEDGER,  GENEKAI.  JOURNAL  AND  GENERAL  JOURNAL  ENTRIES.  39 

Reserve  for  Contracts— Supplies — General  Fund 
Reserve  for  Contracts — Safety — Loan  Funds 
Reserve  for  Contracts — Supplies— Loan  Funds 
♦Reserve  for  Open  Market  Orders — Safety — General  Fund 
♦Reserve  for  Open  Market  Orders — Supplies — General  Fund 
♦Reserve  for  Open  Market  Orders — Safety— Loan  Funds 
♦Reserve  for  Open  Market  Orders — Supplies — Loan  Funds 
To    Budget  Allowance — Safety — General  Fund 
Budget  Allowance — Supplies — General  Fund 
Budget  Allowance — Safety — LoanFunds 
Budget  Allowance — Supplies — Loan  Funds 

♦Unencumbered  Balance  of  Appropriations — Safety — General  Fund 
♦Unencumbered  Balance  of  Appropriations — Supplies — General  Fund 
♦Unencumbered  Balance  of  Appropriations — Safety — Loan  Funds 
♦Unencumbered  Balance  of  Appropriations — Supplies — Loan  Funds 
Collateral  to  foregoing  proprietary  entry. 

12 — Receiver  of  Taxes — General  Account 

Revenues  Accrued,  not  due — General  Account 
To  Revenues — General  Account 

For  accrual  of  revenues,  being  aecoiints  receivable  sent  to  receiver  of  taxes  for  collection; 

and  revenues  accrued,  not  due,  during  the  months  of 19 —   (from  Register  of  Reve- 

niie  Accrual). 

13 — Receiver  of  Taxes — General  Account 

To  Revenues  Accrued,  not  due — General  Account 

For  revenues  accrued  in  a  previous  month  that  have  fallen  due  during  the  month  of 
19 —    (from  Register   of  Revenue  Accrual). 

14 — Land,  Structures,  other  Improvements  and  Equipment — Capital  Account 
To    Investment  of  the  City — Capital  Account 
For  permanent  properties  and  equipment  acquired  by  gift   during  month    of 
191—. 

15 — Expenses — General  Account 

To    Reserve  for  Repairs — General  Account 

For  proportion  of  maintenance  depreciation  for  the  month  of 191 — . 

Where  a  department  or  bureau  receives  from  another  department  or  bureau  services  or 
materials  for  which  it  will  draw  a  warrant,  the  transaction  will  be  handled  the  same  as  a 
purchase  from  an  outsider,  that  is,  through  the  Register  of  Invoices,  and  will  be  included  in 
the  monthly  journal  entry  of  totals  of  that  register. 

For  use  of  Department  of  Supplies  only : 

16 — Invoices  received  from  Departments  and  Bureaus — General  Account 
Invoices  received  from  Departments  and  Bureaus — Capital  Account 
To    Invoices  Payable — General  Account 
Invoices  Payable — Capital  Account 
For    invoices    received    from    various    departments    and    bureaus    during    the    montii    of 
191—. 


•Reserve  for  Open  Market  Orders  is  debitefl  with  the  total  of  the  open  market  orders  liquidated 
column  of  the  register  of  vouchers.  Should  the  total  of  open  market  orders  liquidated  be  in  excess  of 
the  total  of  open  market  order  vouchers  the  difference  should  be  credited  to  "Unencumbered  Balance 
of  appropriations."  If  the  amount  of  the  open  market  order  vouchers  is  in  excess  of  the  total  open  market 
orders  liquidated  the  excess  is  debited  to  "Unencvmbered  Balance  of  Appropriations."  (See  descrip- 
tion of  reduction  and  cancellation  of  open  market  orders,  pages  14  and  16). 

4 


CHAPTER    VI 

DESOEIPTION  AND   USE   OF  MONTHLY  REPORTS     (SCHEDULES    OP    BALANCES 
AND  TOTALS)  FROM  DETAIL  LEDGERS  TO  BE  TRANSMITTED  TO  THE 
DEPARTMENT  OF  CITY  CONTROLLER. 

These  schedules  of  balances  and  totals  must  ho,  made  in  duplicate  and  one  copy  trans- 
mitted to  the  city  controller. 

The  schedule  of  balances  and  totals  of  a  detail  ledger  (1)  provides  a  means  for  proving 
the  accuracy  of  the  detail  ledger  to  its  controlling  account  in  the  general  ledger,  and  (2) 
makes  available   in  report  form   the   information  contained  in  the  detail  ledger. 

The  special  forms  designed  for  this  purpose  are  as  follows: 

1.  Monthly  Appropriation  Statement. 

2.  Monthly  Contract  Statement. 

3.  Monthly  Open  Market  Order  Statement. 

4.  Monthly  Stores  Statement. 

5.  Monthly  Statement  of  Expenses  Incurred. 

6.  Monthly  Work  in  Progress  Statement. 

7.  Monthly  Statement  of  Permanent  Properties  and  Equipment. 

8.  Monthly  Reserve  for  Repairs  and  Capital  Depreciation  Statement. 

9.  Monthly  Revenue  Statement. 

The  purpose  of  transmitting  monthly  statements  to  the  city  controller  of  the  Tarioos 
financial  transactions  that  have  taken  place  in  departments  during  a  month  is  primarily  to 
effect  a  reconciliation  between  the  records  kept  in  departments  and  the  controlling  and  other 
accounts  with  departments  kept  in  the  department  of  city  controller. 

1.  Monthly  Appropriation  Statement. 

This  schedule  of  balances  and  totals  (Form  30)  will  be  prepared  from  the  appropria- 
tion ledger — general  fund,  loan  funds  and  special  and  trust  funds.  As  the  appropriation 
ledger  is  divided  into  three  fund  divisions,  the  schedule  of  balances  will  naturally  be  divided 
into  three  parts,  each  of  which  is  to  be  proven  independently  to  the  respective  controlling 
accounts  in  the  general  ledger. 

The  folio  page  of  the  appropriation  ledger  will  be  indicated  in  the  "Folio"  column,  and 
on  the  same  line  will  be  noted  in  their  order  the  appropriation  item  number,  whether  general, 
loan  or  special  and  trust  funds,  and  the  title  of  the  appropriation  account.  Thereafter  on 
the  same  line  will  be  entered,  in  the  first  money  column,  the  unencumbered  balance  of  the  ap- 
propriation at  the  beginning  of  the  month  for  which  the  statement  is  prepared,  and  in  the 
next  column  the  total  of  additional  appropriations,  transfers  to  and  any  other  credits  to 
appropriations  that  may  have  been  made  during  that  month. 

In  the  columns  under  the  general  caption  of  "Debits"  there  will  be  entered  respectively, 
the  total  of  all  the  debit  amounts  for  the  month  distributed  in  the  four  columns  to  the  right, 
viz.:  "Appropriation  transfers  from,"  "Contracts  executed,"  "Open  Market  Orders  Is- 
sued," "Payroll  and  Miscellaneous  Vouchers  Charged."  The  "Appropriation  Transfers  from" 
wUl  be  the  total  of  red  ink  figures  in  an  appropriation  account  representing  transfers  there- 
from to  other  appropriation  accounts.  The  "Contracts  Executed"  will  be  the  total  contracts 
registered  in  a  month  less  any  deductions  or  cancellations  of  contracts  during  the  same  period. 
The  "Open  Market  Orders  Issued"  will  be  the  total  open  market  orders  issued  for  a  month, 
as  noted  in  the  "Estimated  Amount"  column,  plus  or  minus  any  adjustments  effected  daring 
the  month,  as  noted  in  the  "Add"  or  "Deduct"  columns,  under  the  general  caption  of  "Open 
Market  Order  Encumbrances"  of  the  appropriation  ledger.  The  debits  entered  in  the  "Pay- 
roll and  Miscellaneous  Vouchers  Charged"  column  will  come  from  the  "Payroll  and  Miscel- 
laneous" column  in  the  appropriation  ledger  under  the  general  caption  of  "Expenditures." 
In  the  last  column  of  the  schedule  will  be  noted  the  unencumbered  balance  of  each  appro- 
priation at  the  close  of  the  month  covered  by  the  schedule.  This  balance  will  be  arrived  at 
by  subtracting  the  "Total  Debits"  column  from  the  sum  of  the  two  credit  columns  to  the 
left.  The  proof  of  the  accuracy  of  the  individual  balances  noted  in  the  last  column  may  be 
arrived  at  by  adding  whatever  amount  is  in  that  column  to  the  amount  in  the  "Total 
Debits"  column,  the  sum  of  which  should  equal  the  sum  of  the  two  credit  columns.    The 

40 


DESCBIPTION    AND   USE    OF    MONTHLY    EEPOKTS.  41 

total  of  the  "Total  Debits"  column  deducted  from  the  sum  of  the  totals  of  the  two  credit 
columns  should  be  the  grand  total  of  unencumbered  balances  of  appropriations  of  a  depart- 
ment at  the  end  of  a  month.  The  sum  of  the  totals  of  the  four  debit  columns  should  equal 
the  total  of  "Total  Debits"  column. 

2.  Monthly  Contract  Statement. 

This  schedule  of  balances  and  totals  (Form  31)  will  be  prepared  from  the  contract 
ledger.  The  various  details  as  to  ledger  folio,  item  number  of  appropriation  charged, 
whether  contract  is  a  charge  to  a  general  fund,  loan  fund,  or  special  and  trust  fund  appro- 
priation, the  contract  number,  date  of  contract  and  contractor's  name,  will  be  noted  in  the 
several  columns  provided  for  that  purpose.  As  it  will  probably  be  found  most  desirable  in 
the  keeping  of  the  contract  ledger  to  divide  it  into  the  three  fund  divisions,  the  schedule  of 
balances  will  naturally  be  divided  similarly  into  three  parts,  each  of  which  is  to  be  proven 
independently   to   the   respective   controlling  accounts  in  the  general  ledger. 

The  unexpended  balance  of  a  contract  at  the  beginning  of  the  month  for  which  the 
schedule  is  prepared  will  be  indicated  in  the  first  money  column.  While  these  balances  will  be 
taken  from  the  respective  ledger  accounts,  each  of  them  should  be  checked  to  the  closing  bal- 
ance of  the  same  account  on  the  schedule,  of  balances  of  the  preceding  month. 

The  amount  of  contracts  executed  during  the  month  will  be  entered  in  the  column  with 
that  title.  These  credits  will  be  obtained  from  the  "Amount  of  Contract"  column  of  the  con- 
tract ledger. 

Contract  vouchers  charged  during  the  month  will  be  obtained  from  the  "Amount"  col- 
umn, under  the  heading  "Vouchers"  of  the  contract  ledger. 

The  "Unexpended  Balance  of  Contract  at  End  of  Month"  will  be  the  balance  obtained 
by  subtracting  the  amount  of  the  "Contract  Vouchers  Charged  during  the  month  and  other 
debits"  column  from  the  sum  of  the  two  credit  columns  to  the  left,  viz.:  the  unexpended  bal- 
ance at  the  beginning  of  month  and  contracts  executed,  etc.,  during  the  month.  By  totaling 
all  the  columns  of  this  schedule  the  grand  total  of  unexpended  balances  of  contract  at  the  end 
of  the  month  will  be  proved  in  the  same  way  as  explained  above  for  the  unexpended  balances 
in  individual  contracts. 

3.  Monthly  Open  Market  Order  Statement. 

This  schedule  of  balances  and  totals  (Form  32)  is  prepared  from  the  claimant's  ledger. 
As  it  will  probably  be  found  most  desirable  in  the  keeping  of  the  claimants'  ledger  to 
divide  it  into  the  three  fund  divisions,  the  schedule  of  balances  will  naturally  be  divided 
similarly  into  three  parts,  each  i/f  which  is  to  be  proven  independently  to  the  respective  con- 
trolling accounts  thereof  in  the  general  ledger. 

The  folio  page  of  the  ledger,  the  appropriation  item  number  charged,  and  the  nature  of 
the  fund,  i.  e.,  whether  general,  loan,  or  special  and  trust,  will  be  indicated  in  the  respective 
columns  to  the  left  of  the  schedule.  The  next  four  columns,  headed  respectively  "Order  No.," 
"Date  Order  Issued,"  "Date  Goods  delivered,"  "Indicate  Whether  Partial  (P)  or 
Complete  (C)  Delivery,"  will  be  left  blank  for  city  controller's  purposes,  and  no  entries  need 
be  made  therein  by  departments  submitting  this  schedule  to  the  city  controller. 

The  name  of  the  claimant  will  be  indicated  in  the  column  headed  "Vendor."  The  balance 
of  "unvouchered  orders  at  beginning  of  (the)  month"  for  which  the  schedule  is  prepared  will 
be  entered  in  the  next  column  under  that  title.  This  balance  will  be  the  difference  between 
the  "Open  Market  Orders  Issued"  column  and  the  total  of  the  vouchers  drawn  on  open  mar- 
ket orders,  as  indicated  in  the  column  under  "Vouchers,"  plus  or  minus  any  adjustments.  The 
same  balance  may  be  obtained  by  deducting  from  the  total  of  orders  issued  the  total  of  orders 
liquidated. 

In  the  column  headed  "Open  Market  Orders  Registered  During  Month  and  Other  Credits" 
will  be  entered  for  each  claimant's  account  the  total  amount  of  orders  issued  to  him  during  the 
month  under  review,  as  indicated  in  the  open  market  orders  issued  column  and  of  any  voucher 
adjustments  noted  for  the  month  in  the  column  "Add"  under  the  caption  "Adjustments"  of 
the  claimant's  ledger.  ,- 

In  the  column  headed  "Open  Market  Order  Vouchers  Charged  During  Month  and  Other 
Debits"  will  be  noted  the  total  amount  for  the  month  of  the  "Vouchers"  column  and  of  the 
"Deduct"  column  in  each  claimant's  ledger  account.  The  credit  balance  in  each  claimant's 
account  of  "Unvouchered  Orders  at  End  of  Month,"  called  for  in  the  last  column  of  the 
schedule,  will  be  the  difference  between  the  sura  of  the  first  two  credit  columns  of  the  schedule, 


42  DE8CKIPTIOX    AN!>    ISK    <)l      MONTHLY    RKPORTS. 

and  the  amount  entered  in  the  debit  column  for  vouchers  charf^ed  durinf?  the  month.  The 
grand  total  balance  of  unvouchered  orders  at  tho  end  of  the  month  of  all  claimants'  accounts 
will  be  determined  in  the  same  way  for  individual  balances  after  the  schedule  has  been  com- 
pleted and  all  its  columns  totaled. 

4.  Monthly  Statement  of  Expenses  Incurred. 

This  schedule  of  balances  and  totals  (Form  34)  is  prepared  from  the  expense  ledger,  and 
it  should  be  checked  in  total  to  the  controlling  account  "expense"  in  the  general  ledger. 

In  the  column  "Folio"  will  be  noted  the  folio  page  of  each  account  in  the  expense  ledger. 
In  the  column  "Code  Letter  or  No."  will  be  entered  the  code  symbol  of  the  expense  ac- 
count in  accordance  with  the  classification  of  expenses  established  for  a  department  or  bureau. 
The  title  of  each  expense  account  will  be  indicated  in  the  column  provided  for  that  purpose. 

In  the  column  headed  "Total  Expenses  for  the  Month"  will  be  entered  the  total  amount 
of  expense  items  charged  to  each  account  in  the  expense  ledger  for  the  month  for  which  the 
statement  is  prepared,  less  any  abatements  or  adjustments  (credits),  and  on  the  same  line  in 
the  next  column,  under  the  title  of  "Total  Expenses  for  the  Same  Month  Last  Year,"  will  be 
noted  similarly  the  total  amount  of  expense  items  charged  in  the  same  expense  account  for 
the  same  period  last  year.  If  the  expense  classification  this  year  is  different  from  that  of  last 
year,  or  the  information  relating  to  la-st  year's  expense  accounts  cannot  readily  be  compared 
with  the  expense  classification  of  the  current  month  and  year,  then  the  column  "Total  Expenses 
for  the  Same  Month  Last  Year"  will  be  left  blank  until  an  accurate  comparison  of  expenses 
by  months  and  years  can  be  scheduled.  The  same  is  true  of  the  last  two  columns  on  the 
schedule.  A  departmeut  which  can  make  a  comparison  of  the  current  year's  classification  of 
expenses  with  that  of  last  year  will  fill  in  the  information  called  for  in  these  two  columns,  other- 
wise the  columns  in  question  will  remain  blank  for  the  current  year. 

A  department  having  its  expense  accounts  in  such  .shape  as  to  be  able  to  complete  this 
schedule  will  provide  as  follows : 

If  the  month  for  which  the  schedule  is  being  prepared  is,  say,  the  month  of  June.  191 — , 
then  "six"  will  be  written  in  on  the  blank  line  of  the  title  heading  of  the  third  column,  mak- 
ing it  read  "Total  Expenses  for  the  Six  Months  Ending  June  30.  191 — ,"  and  below  opposite 
each  expense  account  will  be  entered  the  total  amount  of  expense  items  charged  therein,  leas 
any  abatements  or  adjustments  (credits),  during  the  six  months  ended  with  June  30,  191 — . 
In  the  last  column  on  the  schedule  the  total  expense  items  charged  to  each  expense  ac- 
count for  the  six  months  ended  June  30,  191 — ,  will  be  noted  as  a  basis  for  a  comparison  of 
expense  aeeounts  covering  the  same  period  in  the  previous  year. 

5.  Monthly  Stores  Statement. 

This  is  a  schedule  of  balances  and  totals  taken  from  the  stores  ledger  (Form  33)  by 
money  values  rather  than  quantities,  and  it  should  be  checked  in  total  to  the  controlling  ac- 
count "stores"  in  the  general  ledger. 

The  folio  number  of  the  stores  ledger  page  of  each  article  scheduled  will  be  noted  in  the 
column  "Folio."  Under  "Code  Letter  No.."  will  be  entered  the  code  symbol  of  each  article 
of  stores  if  such  classification  has  been  establishe<i,  and  in  the  next  column  under  "Title  of 
Stores  Ledger"  will  be  noted  the  name  of  the  article. 

In  the  first  three  debit  columns  there  will  be  noted  respectively  for  each  article  of  stores 
the  balance  on  hand  at  the  beginning  of  the  month  for  which  the  statement  is  being  prepared. 
the  total  received  during  the  month,  and  stores  returned  (if  any)  to  the  storehouse  during  the 
month. 

In  tho  "Stores  Issued  During  the  Month"  column  will  be  noted  for  each  article  the  total 
of  that  article  issued  from  the  storehouse  during  the  month. 

The  debit  balance  of  "Stores  on  Hand  at  End  of  Month"  column  will  be  the  difference 
between  the  sum  of  the  entries  in  the  first  three  debit  columns  and  the  amount  in  the  Stores 
Issued  During  the  Month — Credits  column  of  the  .schedule. 

The  last  column  of  the  schedule  with  the  title  "Stores  on  Hand  at  End  of  Same  Month 
Last  Year — Debit  Balance"  will  be  filled  in  from  the  report  of  the  same  month  of  the  prerions 
year.  This  column  is  for  comparative  purposes  to  note  the  fluctuation  of  articles  held  in 
storehouse. 


DKSClilPTIOX    AND    ISK    Or    MONTHLY    KKI'OItTS. 


43 


The  schedule  should  be  totaled  when  eompleiud,  and  the  grand  total  balances  on  hand  at 
the  end  of  the  month  of  a  stores  ledger  should  be  proved  in  the  same  way  that  the  balance  on 
hand  at  end  of  month  is  determined  for  each  article. 

6.  Monthly  Work  in  Progress  Statement. 

This  schedule  of  balances  and  totals  is  prepared  from  the  work  in  progress  ledger, 
and  it  should  be  checked  in  total  to  the  controlling  account  "work  in  progress"  in  the  gen- 
eral ledger.  Columns  are  provided  for  "'Folio"  and  "Code  Numbers"  of  each  job  in  progress. 
In  the  columns  headed  "Name  of  Job"  should  be  listed  the  various  jobs  or  titles  of  the  ac- 
counts, and  in  the  column  "Balance  at  Beginning  of  the  Month"  the  balances  of  the  various 
jobs  at  beginning  of  month.  The  total  expenditures  for  the  month  for  work  in  progress  (work 
done),  together  with  any  other  debits,  is  placed  in  the  next  column.  The  following 
column  provides  for  "Work  in  Progress  Distributed"  to  property  or  expense  during  the 
month,  or  any  other  credits.  The  iinal  column  is  the  "Balance  at  the  End  of  the  Month" 
and  represents  the  work  in  progress  wliich  has  not  yet  been  completed  and  distributed.  This 
column  should  be  checked  by  adding  the  expenditures  to  the  balance  at  the  beginning  and 
deducting  the  work  in  progress  distributed. 

7.  Monthly  Statement  of  Permanent  Properties  and  Equipment. 

This  schedule  of  balances  and  totals  (Form  35)  is  prepared  from  the  property  ledger,  and 
it  should  be  cheeked  in  total  to  the  controlling  account  "land,  structures,  other  improvements 
and  equipment"  in  the  general  ledger.  The  column  headed  "Folio"  is  for  the  page  of  each  ac- 
count in  the  property  ledger.  "Code  Letter  or  Number"  refers  to  the  code  symbol  and  number 
of  the  property  account,  according  to  the  property  classification.  The  title  of  the  property  ac- 
count will  be  entered  in  the  column  provided  for  that  purpose.  The  property  balances  at  the 
beginning  of  the  month  (cost  value)  will  be  entered  in  the  next  column.  The  next  column  is 
for  the  acquisitions  of  property  and  other  debits  during  the  month.  Then  follows  a  column  for 
"property  disposed  of  during  the  month  and  other  credits."  The  fourth  amount  column  shows 
the  "balance  at  end  of  month  (cost  value)."  The  figures  in  this  column  should  be  checked  by 
adding  the  property  additions  to  the  balance  at  the  beginning  of  the  month  and  deducting  the 
dispositions  or  other  credits. 

The  final  column  of  the  form  provides  for  showing  the  "balance  (cost  value)  at  the 
end  of  the  same  month  last  year."  The  purpose  of  this  column  is  to  enable  the  executive  to 
compare  the  status  of  the  property  balances  this  year  with  that  of  last  year,  and  to  have  in 
mind  the  net  increase  or  decrease  in  the  city's  investment  in  permanent  properties  and  equip- 
ment in  detail  as  to  various  kinds  of  properties  and  their  several  functional  uses.  A  direct 
relation  is  maintained  bj'  the  experienced  administrator  between  the  property  investment 
and  the  results  produced  or  work  performed.  The  statements  of  condition  of  and  changes  in 
the  property  accounts,  expenses  and  work  performed,  are  the  most  essential  guides  in  deter- 
mining whether  or  not  adequate  results  are  being  obtained. 

8.  Monthly  Depreciation  Statement. 

a.  Reserve  for  Repairs. 

b.  Reserve  for  Capital  Depreciation. 

This  schedule  of  balances  and  totals  is  prepared  from  the  depreciation  ledger,  and  it 
should  be  checked  in  total  to  the  controlling  accounts  "reserve  for  repairs"  and  "reserve 
for  capital  depreciation"  in  tiie  general  ledger.  As  in  the  other  schedules  of  balances 
columns  are  provided  for  "Folio"  and  "Code  Number."  Then  follow  columns  for  "Title 
of  Property  Class,"  "Total  Valuation  of  Property  in  the  Class,"  "Balances  of  Reserve  at 
Beginning  of  Month,"  and  "Monthly  Depreciation"  credits.  In  the  statement  of  reserve 
for  repairs  the  next  column  is  for  the  "Expenditures  for  Repairs"  which  are  debits,  and 
the  final  column  is  the  "Balance  of  Reserve  at  End  of  Month."  In  the  statement  of 
reserve  for  capital  depreciation  the  next  column  following  the  monthly  depreciation  is  for 
the  "Expenditures  for  Replacements,"  and  the  final  column  is  for  the  "Balance  of  Re- 
serve at  End  of  Month."  Both  of  these  final  eolumns  shoiild  be  checked  by  adding  the 
credit  columns  to  the  balances  at  the  beijiuuing  of  the  month  and  deducting  the  debits  to 
get  the  balance  at  the  end  of  the  month. 


44  DESCBIPTION   AlTD  USE   OF   MOITTHLT   BEPOBTS. 

9,  Monthly  Revenue  Statement.  "    .      "r.*^'  --^:;'- 

This  schedule  of  balances  and  totals  is  prepared  from  the  revenue  ledger,  and  should  be 
checked  in  total  to  the  controlling  account  "revenues"  in  the  general  ledger.  This  schedule 
has  columns  for  "Folio"  and  "Code  Number"  as  in  the  other  schedules.  The  source  of  reve- 
nue (or  title  of  accounts)  is  then  given.  The  next  columns  provide  for  "Balance  at  the  Begin- 
ning of  the  Month,"  "Revenue  Accrual  for  the  Month"  (credits)  and  "Abatement  of  Reve- 
nue and  Other  Debits."  The  final  column  shows  the  "Balance  at  End  of  Month,"  and  it 
should  be  checked  by  adding  the  revenue  accruals  for  the  month  to  the  balance  at  the  be- 
ginning and  deducting  the  abatements  of  revenue. 


CHAPTER    VII 

DESCRIPTION  AND  USE  OF  SUMMARY  REPORTS  FROM  GENERAL  LEDGER. 

Thb  summary  reports,  shown  on  pages  47  to  55,  that  the  general  ledger  of  a  department 
or  bureau  makes  available,  have  to  do  with  financial  condition,  operating  results  and  condi- 
tion of  funds.  These  reports  show  the  financial  condition  of  the  general  account,  the  capital 
account  and  the  special  and  trust  account,  and  the  operating  results  of  the  general  account. 
In  addition,  they  show  the  condition^of  the  general  fund,  loan  funds  and  special  and  trust 
funds  that  have  been  appropriated  to  a  department  or  bureau. 

Balance  Sheets  and  Operation  Accounts. 

The  balance  sheets  of  the  general  account,  capital  account  and  special  and  trust  accounts 
show  in  summary  form  the  proprietary  relations  of  a  department  or  bureau,  the  assets  in  its 
care,  the  liabilities  that  it  is  creating  as  a  result  of  its  activities,  the  reserves  it  has  set  up, 
the  deferred  debit  and  deferred  credit  balances  incident  to  accruing  of  revenue  and  expense, 
and  the  net  investment  of  the  city  intrusted  to  its  custody  or,  in  other  words,  the  excess  of 
assets  and  deferred  debits  over  liabilities,  reserves  and  deferred  credits. 

The  balance  sheets  of  the  general  fund,  loan  funds  and  special  and  trust  funds  show  the 
appropriations  of  city  councils  to  the  department  or  bureau  and  the  unencumbered  balance, 
contract  reserves  and  open  market  order  reserves. 

The  four-column  arrangement  of  the  summary  reports  provides  for  entering  in  the  first 
column  the  balance  of  each  account  at  the  close  of  the  previous  month.  These  balances  should 
be  taken  from  the  general  ledger  accounts,  but  should  be  checked  to  the  balances  in  the  fourth 
column  of  the  nummary  reports  for  the  preceding  month.  In  preparing  the  debit  side  of  the 
summary  statements,  there  is  entered  in  the  second  column  the  sum  of  the  increases  (debits) 
for  the  month  in  each  account.  In  the  third  column  is  entered  the  sum  of  the  decreases 
(credits)  in  each  account.  In  the  fourth  column  is  entered  from  the  trial  balance  the  balance 
of  each  account  at  closing.  The  accuracy  of  the  work  should  be  checked  by  adding  the  first 
and  second  columns  and  deducting  the  amount  in  the  third  column,  and  the  result  thus  ob- 
tained should  prove  to  the  balance  in  the  fourth  column.  Adjustment  entries  in  any  ac- 
count should  be  eliminated  on  both  sides  of  the  account  in  stating  the  increases  and  decreases 
so  that  the  respective  amount  of  increase  and  decrease  stated  may  represent  the  true  volume 
of  transactions  affecting  the  account  for  the  month. 

The  same  procedure  obtains  in  preparing  the  credit  side  of  the  summary  statements,  the 
only  difference  being  that  with  the  accounts  that  normally  have  credit  balances  the  in- 
creases are  credits,  and  the  decreases  debits. 

The  summary  operation  account  of  the  general  account  shows  the  totals  of  revenue  ac- 
crued and  expenses  incurred,  and  the  excess  of  the  one  over  the  other.  The  analysis  of  the 
"investment  of  the  city — general  account"  shows  the  changes  in  that  account  that  have  taken 
place  during  the  period  covered  by  the  statement. 

Trial  Balances. 

A  monthly  trial  balance  book  for  the  general  ledger  is  to  be  kept.  The  ordinary  ruling 
of  a  trial  balance  book  with  columns  for  folio  and  title  of  account  and  debit  and  credit  columns 
for  each  month  will  meet  every  requirement.  It  should  contain  a  sufficient  number  of  short 
sheets  for  a  year's  trial  balances  in  order  to  avoid  rewriting  the  titles  of  accounts  oftener  than 
once  a  year.  In  addition  to  the  trial  balance  at  the  close  of  each  month,  after  all  journal  en- 
tries for  the  month  have  been  entered  and  posted  a  trial  balance  should  be  taken  off  as  of  the 
beginning  of  the  year,  January  1,  after  opening  monthly  journal  entries  have  been  posted  and 
before  the  posting  of  any  monthly  journal  entries  for  transactions  for  the  month  of  January. 
A  trial  balance  should  also  be  taken  after  all  closing  journal  entries  have  been  posted  at  the 
close  of  the  year.     This  makes  fourteen  trial  balances  for  the  year. 

It  is  from  the  trial  balance  of  the  general  ledger  that  the  summary  monthly  reports  are 
prepared  showing  financial  condition,  operating  results  and  condition  of  funds.  The  trial  bal- 
ance at  the  beginning  of  the  year  after  opening  journal  entries  have  been  posted  furnishes 
the  balances  of  accounts  for  preparing  balance  sheets  as  of  January  1  for  comparison  with 

45 


46  D£SCBIPTION    AND   DSE   OF    SUUMABY   BEPORTS. 

balance  sheets  and  operation  accounts  as  of  later  dates  during  the  year.  The  trial  balance  at 
the  close  of  the  year  after  all  closing  journal  entries  have  been  posted  furnishes  the  balances 
of  accounts  for  the  balance  sheets  and  operative  accounts  as  of  the  close  of  the  year. 

A  trial  balance  is  taken  from  the  general  ledger  by  footing  the  debits  and  the  credits  of 
each  account,  deducting  the  smaller  from  the  larger  and  entering  the  balance  thus  obtained 
on  the  trial  balance  form,  in  the  debit  column  if  the  sum  of  the  debits  exceeds  the  sum  of  the 
credits,  and  in  the  credit  column  if  the  reverse  is  the  case. 

Checks  on  Accuracy  of  the  Monthly  Trial  Balance  of  the  General  Ledger. 

1.  When  the  balances  of  all  accounts  in  the  general  ledger  have  been  entered  in  the  trial 
balance  see  that  the  sum  of  the  debits  equals  the  sum  of  the  credits. 

2.  See  that  the  sum  of  the  debits  equals  the  sum  of  the  credits  for  the  general  account, 
capital  account,  special  and  trust  accounts,  general  fund,  loan  funds  and  special  and  trust 
funds. 

3.  See  that  the  totals  of  each  of  the  monthly  statements  (schedules  of  balances  and 
totals)  described  in  Chapter  VI  agree  with  the  balances  of  their  respective  controlling  ac- 
counts in  the  general  ledger. 

4.  See  that  the  balance  of  account  "advances  to  capital  account — general  account,"  and 
balance  of  account  "advances  from  general  account — capital  account"  equal  one  another,  one 
being  a  debit  balance  and  the  other  a  credit  balance.  Apply  the  same  check  to  any  other  ad- 
vances between  accounts. 

5.  Check  the  balances  of  the  accounts  "vouchers  sent  to  city  controller — general  ac- 
count" and  "invoices  sent  to  department  of  supplies — general  account"  with  the  reduction  in 
the  "budget  allowance — general  fund"  for  the  month.  Apply  the  same  test  to  the  similar 
accounts  of  the  capital  account  and  loan  funds,  and  of  the  special  and  trust  accounts  and 
special  and  trust  funds. 

Forms  for  Summary  Reports. 

There  follow  the  forms  for  the  summary  consolidated  balance  sheet  (Exhibit  "A"),  the 
general  account  balance  sheet,  operation  accounts  and  investment  of  the  city  account 
(Exhibit  "B"),  the  capital  account  balance  sheet  (Exhibit  "C"),  the  special  and  tnist 
account  balance  sheet  (Exhibit  "D")  and  the  general,  loan  and  special  and  trust  funds 
balance  sheets   (Exhibit  "E"). 


CITY  OF  PHILADELPHIA 

Bureau  of 


Department  of 

SUMMARY  CONSOLIDATED  BALANCE  SHEET  AS  OF 191 

Showing  Assets,  Liabilities,  Net  Investment  of  the  City,  Appropriations,  Reserves  and  Funds. 


PROPRIETABT  ACCOUNTS 

General                 Capital 
Account       ,         Ac^^nt 

Exhibit  "B"         Exhibit  "C" 

Special 
and  Trust 
Accounts 

See 
Exhibit  "D" 

ASSETS  AND  DEFERRED  DEBITS 

flash  and  rash  items             

I                             i 

1            

Worlvino'   asspfs                                                

■         ;          __          ,          

Land,  structures,  other  improvements  and  equipment- 
Sppiirifips  anfl  nfher  ncrsonal  nrooerties  in  trust    

--         i         —         I          —          '          — 

,          _ 

Deferred  debits                  

(                    ^                    , 

Total  assets  and  deferred  debits...        

LIABILITIES,  RESERVES  AND   DEFERRED  CREDITS 

Invoices  and  navrolls  navable                ..           

— 

— 

_ 

Other  liabilities      



Vouchers  sent  to  city  controller 



Invoices  sent  to  denartment  of  suuolies 





Reserves                    ..  .    .             

—                 — 

i          _ 

Due  to  other  accounts          



Deferred  credits                          



Total  liabilities,  reserves  and  deferred  credits 
Net  investment  of  the  city 

—                 — 

—                   — 

Totals    

BALANCES  OP  APPROPRIATIONS  AND  FUNDS 


Unexpended  balances  of  budget  allowances — Total. 


General  Fund        Loan  Funds 
Totals  See  ,  See 

,   Exhibit  "E"     1     Exhibit  "E" 


Special  and 
Trust  Fuuda 

See 
Exhibit  "E" 


Unexpended  balance  of  appropriations — Safety. 


Unencumbered   balance    of   appropriations — i 

Safety  i 

Reserve  for  contracts — Safety 

Reserve  for  open  market  orders — Safety 

Unexpended  balance  of  appropriations — Supplies..! 


Unencumbered   balance   of   appropriations — 

Supplies  

Reserve  for  contracts — Supplies 

Reserve  for  open  market  orders — Supplies 


EXHIBIT  "A" 
47 


Department  of. 
Bureau  of 


CITT    OF 

QENERAL 

BAL.ANCK 


ASSETS 

BaluiM. 

teoMaM 
(IMitu) 

Vatum 
(Ondiu) 

0HBBBV* 

in- 

m- 

Cash  and  cash  items 

— 

1     1    1     1     1     1     1     i     1 



Accounts  receivable „ 

Stores  (as  per  Schedule  No.  — ) 

Work  in  progress  (as  per  Schedule  No.  — ).. 
Crop  of  191 



'      ■ 

Manufactured  goods  

Advances  to  capital  account 

Revenues  accrued,  not  due 

Unaccrued  expenses 

Total  assets — general  account 

— 

— 

OPERATIO.V 

Expenses  incurred  (as  per  Schedule  No.  — ) 

Excess  of  revenues  over  expenses 

1 

i 

Total 

_                     _                      _ 

— 

INYSSTMENT 

Debits: 

Excess  of  expenses  over  revenues  (as  above) „ 

— 

— 

— 

— 

Balance  at ,  191....  (see  general  account 

balance  sheet  above)  

— 

Total  debits  ™ 

— 

—        i         — 

— 

NOTE:— The  references  to  Bchedules  upon  this  exhibit  are  to  schedules  of  balances  and  totals 
the  general  ledger.  The  only  exceptions  to  this  is  the  schedule  of  invoices  and 
on  the  register  of  invoices  and  payrolls. 

EXHIBIT 


48 


PHILADELPHIA 

I    ACCOUNT 

i      SHEET 


Statement  as  of 191....,  and.. 

191....,  with  increases  and  decreases. 


LIABILITIES  AND  EESERVES 


Invoices  and  payrolls  payable — safety  (Schedule  No. — ) 
Invoices  payable — supplies  (as  per  Schedule  No. — ).... 

Invoices  sent  to  department  of  supplies 

Vouchers  sent  to  city  controller 

Reserve  for  repairs  (as  per  Schedule  No. — ) 

Advances  from  capital  account - 

Expenses  accrued,  not  due 

Unaccrued  revenues 

Investment  of  the  city 

Total  liabilities,  reserves  and  investment  of  the 
city — general  account _ 

ACCOUNTS 


Balance, 


191— 


Increases  Decreases 

(Oiedits)  (Debits) 


Balance, 

191— 


T?,pvpnnps  accrued  (b,s  ner  Schedule  No.  — )             

— 

— 

— 

Kxrpss  nf  exnpnspa  over  revenues                           



Total                 

— 

— 

— 

OF  THE   CITY 


Balance  at ,  191 (see  general  account 

balance  sheet  above)  

Credits : 

Excess  of  revenues  over  expenses  (as  above) 


Total  credits 


of  detail  ledgers,  the  totals  of  which  should  prove  to   their   respective  controlling   accounts   in 
payrolls  payable,  the  schedule  for  which  is  prepared  from  the  open  items  (unvouchered  invoices) 

"B" 


49 


Department  of.. 
Bureau  of 


CITY  or 
CAPITAL 

BALANCK 
Permanent  Funds,  Pro 


ASSKTS 

Balam-e,                                                                              BaUUMV. 

iDcreuci              IwCT— iw 

(DtMU)                (CmBU) 

W-                                                                                     I»l  - 

Cash  and  cash  items 

Work  in  progress  (as  per  Schedule  No.  — ) 

I^and,  structures,  other  improvements  and  equipment 
(as  per  Schedule  No. — ) 

Advances  to  general  account 



i 

Total  assets — capital  account  

' 

NOTE: — The  references  to  schedules  upon  this  exhibit  are  to  schedules  of  balances  and  totals  of 

general  ledger.    The  only  exception  to  this  is  the  schedule  of  invoices  and  payrolls 
register  of  invoices  and  payrolls. 

EXHIBIT 


60 


ruiLADELPHiA  Statement  as  of 191....,  and. 

ACCOUNT 

191....,  with  increases  and  decreases. 

SHEET 

perties  and  Improvements 


Bulanec,  lUlanrc, 

UABILITIKS  AND  RESKRVKS  '(dJwSo  (c'rSlu') 

I       iM—        I  m— 


Invoices  and  payrolls  pavable — safety  (as  per  Schedule] 
No.—)   ' 

Invoices  payable — supplies  (as  per  Schedule  No. — ) 

Invoices  sent  to  department  of  supplies 

Vouchers  sent  to  city  controller 

Advances  from  general  account 

Reserve  for  capital  depreciation  (as  per  Sch.  No.  — )... 

Investment  of  the  city 


Total  liabilities,  reserves  and  investment  of 
the  city — capital  account 


detail  ledgers,  the  totals  of  which  should  prove  to  their  respective  controlling  accounts  in  the 
payable,  the  schedule  for  which  is  prepared  from  the  open  items  (unvouchered  invoices)  on  the 

"C" 


51 


Department  of.. 
Bureau  of 


ciTT  or 
SPECIAL  AND 

BALANCE 


ASSETS 

BaUoM, 

loemMi 

DeoMM 

Batoer, 

_ 

IW- 

IW— 

Cash  and  cash  items 

— 

^_ 

Accounts  receivable _ 

Securities  and  other  personal  properties  in  trust  (as 
per  Schedule  No.  — ) 

— 

Land,  structures,  other  improvements  and  equipment 
in  trust  (as  per  Schedule  No.  — ) 

Advances  to  other  accounts 

— 

Total  assets — special  and  trust  acconnts _ 

— 

— 



— 

NOTE: — The  references  to  schedules  upon  this  exhibit  are  to  schedules  of  balances  and  totals  of 
general  ledger. 

EXHIBIT 


61 


PHILADELPHIA 

TEUST  ACCOUNTS 
SHEET 


Statement  as  of 191....,  and. 

191.—,  with  increases  and  decreases. 


IJA3ILITIES  AND  EESEEVE8 

Balance. 

Increases 
(Qredlti) 

Decreases 
(Debits) 

Balance, 

191- 

191— 

Tnvoipps  navable                  

— 

— 

•■^~ 

_ 

Vonrhprs  spnt  to  citv  controller    

Dpnosits                                     

Resprvps  for  funds  held  for  snecific  Durooses 

T?,p<iprvp<5  for  frnsf  VipnpfiriarifiS                          

Aflvanpps  fvcivn  ntTipr  flrroimts                        ..       

Total  liabilities  and  reserves  —  special  and 
trust  accounts                  

— 

— 

— 

detail  ledgers,  the  totals  of  which  should  prove  to  their  respective  controlling  accounts  of    the 
"D" 


63 


Department  of 
Bureau  of 


DKBIT  BAl.ANCKK 


Budget  allowance — safoty 
Budget  allowance— supplies 


CITY    OF 

COMPAKATIVE  FUND 
GENERAL 


Bill  DM 
Ml- 


InrrfUM  DecmM* 

(brbltf)  (Oicdito) 


Baiaat* 


Total  debits — general  fund 

Budget  allowance — safety 

Budget  allowance— supplies 


liOAN 


Total  debits — loan  funds 


SPECIAL  AND 


Budget  allowance      ... 

_                 _      J 

I 

Total  debits — special  and  trust  funds _ 

— 

1         _         1         _ 

1 

NOTE:— The   references   to   schedules  upon   this    exhibit  are  to  schediilos  of  balances  of  detail 
lodger. 

EXHIBIT 

64 


PHILADELPHIA 

BALANCE  SHEET 

FUND 


Statement  showing  the  provisions  made  for  financing 
the  future  needs  of  the  Bureau  (or  Department)  of 

,  together  with  the  condition  of  funds 

and  appropriations,  as  of 191...., 

and 191....,    with    increases    and 

decreases. 


CREDIT  BALANCES 


Unexpended  balance  of  appropriations — safety.. 


Unencumbered    balance    of    appropriations — safety 

(as  per  Schedule  No. — ) 

Reserve  for  contracts — safety  (Schedule  No. — ) 

Reserve  for  open  market  orders — safety  (Sch.  No. — ) 


Unexpended  balance  of  appropriations — supplies- 


Balance 


191— 


iDcreases 
(Credits) 


Deeressei 
(DebiU) 


Balance 
191— 


Unencumbered  balance  of  appropriations — supplies 

(as  per  Schedule  No. — ) 

Reserve  for  contracts — supplies  (Schedule  No. — ) 

Reserve  for  open  market  orders — supplies  (Sch.  No. — ) 


Total  credits — general  fund 


FUNDS 


Unexpended  balance  of  appropriations — safety.. 


Unencumbered   balance   of   appropriations — ^safety 

(as  per  Schedule  No. — ) 

Reserve  for  contracts — safety  (Schedule  No. — ) 

Reserve  for  open  market  orders — safety  (Sch.  No. — ) 


Unexpended  balance  of  appropriations — supplies.. 


Unencumbered  balancel  of  appropriations — supplies 

(as  per  Schedule  No. — ) 

Reserve  for  contracts — supplies  (Schedule  No. — ) 

Reserve  for  open  market  orders— supplies  (Sch.  No. — ) 


Total  credits — ^loan  funds 


TRUST  FUNDS 


Unexpended  balance  of  appropriations . 


Unencumbered  balance  of  appropriations  (as  per 
Schedule  No. — )  

Reserve  for  contracts  (as  per  Schedule  No. — ) 

Reserve  for  open  market  orders  (as  per  Schedule 
No.—)  .„. 


Total  credits— special  and  trust  funds.. 


ledgers,  the  totals  of  which  should  prove  to  their  respective  controlling  accounts  of  the  general 

"E" 

55 


CHAPTER   VIM 

ORGANIZATION   UNITS   AND   FUNCTIONS  OR  ACTIVITIES  OF  THE  CITY  AND 

COUNTY. 

The  purpose  of  city  and  couaty  government  is  to  perform  the  functions  delegated  by 
the  constitution  and  laws  of  the  state  to  county  and  municipal  officers  in  an  eflfective,  effi- 
cient and  economical  manner.  One  of  the  best  aids  to  efficient  administration  is  a  compara- 
tive statement  of  expense  incurred  so  classified  that  the  cost  of  administration,  operation 
and  maintenance  may  be  determined  in  terms  of  objects  of  expense  for  each  function  or  ac- 
tivity of  a  department  or  bureau.  Such  information  is  also  of  great  value  to  the  appropri- 
ating bodies  in  passing  upon  questions  of  financial  policy. 

In  addition  to  classifying  expenses  incurred  by  function  or  activity,  it  is  desirable  to 
classify  property  and  equipment  in  a  similar  manner  in  order  that  statements  of  property 
owned,  acquired  and  disposed  of  may  show  the  purpose  for  which  the  property  was  acquired. 
It  thus  becomes  possible  for  the  legislative  body  and  for  administrative  officials  to  know  the 
capital  investment  of  the  city  and  county  for  performing  each  of  its  functions.  They  are 
then  in  a  position  to  consider  most  intelligently  those  portions  of  budgetary  requests 
that  have  to  do  with  estimates  for  additional  property  and  equipment. 

Organization  Units  and  Functions  or  Activities. 

01.  CLERKS  OF  COUNCILS 

1.  Legislative  enactments 

02.  DEPARTMENT  OF  MAYOR 

1.  Executive  direction  and  control  ^ 

2.  Contracts  and  statistics  " 

3.  Free  Library 

4.  Philadelphia  Museums 

5.  Educational  and  general  welfare  contributions 

51.  Pennsylvania  Academy  of  Fine  Arts 

52.  Pennsylvania  Museum  and  School  of  Industrial  Art 

53.  Teachers'  Annuity  and  Aid  Association 

54.  University  of  Pennsylvania — free  scholarships 

55.  Safe  and  sane  fourth  of  July 

03.  DEPARTMENT   OF   CITY   CONTROLLER 

1.  Executive  "" 

2.  Accounting  and  reporting 

3.  Auditing  receipts 

4.  Auditing  expenditures 

04.  DEPARTMENT  OP  CITY  TREASURER 

1.  Receipt,  care,  investment  and  disbursement  of  public  funds 

2.  Educational  and  other  contributions 

05.  BOARD  OF  REVISION  OF  TAXES  ' 

1.  Assessment  of  real  estate  and  personal  property 

06.  DEPARTMENT  OF  RECEIVER  OF  TAXES 

1.  Executive 

2.  Receipt  of  city  taxes  for  current  year — main  office 

3.  Collection  of  state  tax  and  miscellaneous  items 

4.  Collection  of  delinquent  taxes 

5.  Collection  of  water  rents 

6.  Searching  records  of  department 

7.  Collection  of  city  and  state  taxes  and  water  rents — local  branch  offices 

07.  DEPARTMENT  OF  LAW 

1.  Legal  advice  and  representation 

66 


OEGANIZATION   UNITS   AXD  JUNCTIONS   OR  ACTIVITIES   OF   THE   CITY   AND  COUNTY.  57 

08.  DEPARTMENT  OF  SUPPLIES 

1.  Executive — purchase  of  supplies  and  equipment  for  city  departments 

09.  CIVIL  SERVICE  COMMISSION 

1.  Executive 

2.  Examination  of  applicants 

3.  Preparation  of  lists  and  certiiicatioQ  of  persons  eligible  for  city  positions 

10.  DEPARTMENT  OF  CITY  COMMISSIONERS 

1.  Executive — office  of  city  commissioners 

2.  Holding  primary  election 

3.  Registration  of  voters 

4.  Holding  general  election  and  computing  returns  of  same 

5.  Making  assessment  for  jury  list  and  poll  tax  list 

6.  Administration  of  courts ; 

61.  Municipal  court 

611.  Probation  oflScers 

62.  Courts  of  common  pleas 

63.  Courts  of  quarter  sessions 

64.  Orphans'  court 

65.  Supreme  court 

7.  Care  of  defective,  dependent  and  delinquent  persons 

8.  Detention  of  juvenile  offenders 

9.  Assessment  of  damages  to  property  owners  occasioned  by  the  appropriation  of  land 

by  corporations  having  the  power  of  eminent  domain 

10.  Pay  of  magistrates  and  imposition  of  fines  for  cruelty 

11.  Making  contributions  to  military  organizations 

12.  Inspection  of  weights  and  measures 

11.  CLERKS  OF  COURTS  OF  OYER  AND  TERMINER  AND  QUARTER  SESSIONS 

1.  Executive 

2.  Keeping  records  and  administration  and  clerical  work  of  courts 

3.  Application  for  liquor  licenses 

12.  PROTHONOTARY,  COURTS  OF  COMMON  PLEAS 

1.  Executive 

2.  Keeping  records  and  administration  and  clerical  work  of  courts 

3.  Issuing  writs 

4.  Keeping  records  of  judgments 

5.  Keeping  records  of  liens 

6.  Certifying  copies  and  abstracts  of  records 

7.  Filing  documents  of  courts 

8.  Printing  and  distributing  jury  lists 

13.  DEPARTMENT  OF  CORONER 

1.  Investigation  of  the  cause  of  sudden,  accidental  and  suspicious  deaths 

2.  Care  of  bodies  at  the  morgue 

14.  DEPARTMENT  OF  RECORDER  OF  DEEDS 

1.  Recording  of  deeds  and  mortgages 

2.  Transcribing  old  records 

15.  DEPARTMENT  OP  REGISTER  OF  WILLS 

1.  Recording  and  custody  of  wills 

2.  Administration  of  orphans'  court 

16.  DEPARTMENT  OF  DISTRICT  ATTORNEY 

1.  Prosecution  of  criminal  offenders  against  the  county  and  state 


68  OBOANOATIOS  UNITS  AlTD  FUN0TI0N8  OE  A0TIVITIE8  OF  THE  OITT   AlTD  COUHTT. 

17.  DEPARTMENT  OF  SHERIFF 

1.  Executive 

2.  General  ministerial  work  of  the  courts,  including  impannelling  of  juriea 

3.  Quasi-judicial   functions — (sheriflf 's  juries) 

4.  Service  of  writs 

5.  Conveyance  and  custody  of  prisoners  during  trial  and  to  place  of  commitment 

20.  DEPARTMENT  OF  PUBLIC  SAFETY  (DIRECTOR'S  OFFICE) 

1.  Executive 

2.  Regulating  and  licensing  employment  agencies 

3.  Contributions  to  various  philanthropic  organizations 

21.  BUREAU  OF  POLICE 

1.  Executive 

2.  Accounting  and  reporting 

3.  Policing  the  city 

4.  Policing  waterways 

5.  Detection  of  crime 

6.  Disposition  of  stray  animals 

7.  Erection  of  street  signs 

8.  Determination  of  causes  of  fire 

9.  Care  of  sick  and  injured  persons 

10.  Care  of  sick  and  injured  employees  and  prisoners 

11.  Care  of  retired  employees  and  their  beneficiaries 

22.  BUREAU  OF  FIRE 

1.  Executive 

2.  Accounting  and  reporting 

3.  Fire  protection 

4.  Care  of  equipment 

23.  BUREAU  OF  STEAM  ENGINE  AND  BOILER  INSPECTION 

1.  Inspection  of  steam  engines  and  boilers,  licensing  engineers  and  enforcing  the 
smoke  law 

24.  BUREAU  OF  BUILDING  INSPECTION 

1.  Inspection  of  buildings  and  building  plans 

25.  BUREAU  OF  ELEVATOR  INSPECTION 

1.  Inspection  of  elevators 

26. 

27.  BUREAU  OF  CORRECTION 

1.  Executive 

2.  Accounting  and  reporting 

3.  Detention  and  care  of  petty  oflfenders 

28.  ELECTRICAL  BUREAU 

1.  Executive 

2.  Accounting  and  reporting 

3.  Heating  and  lighting  city  hall  and  running  elevators 

4.  Communication — telephone  (municipal  and  police)  and  telegraph  (fire  signal) 

5.  Inspection  of  electrical  installation 

30.  DEPARTMENT  OF  PUBLIC  HEALTH  AND  CHARITIES  (DIRECTOR'S  OFFICE) 

1.  Executive 

2.  Care  of  dependent  and  defective  persons 


OEGANIZATION  UNITS  AND  FUNCTIONS  OK  ACTIVITIES  OF  THE  CITY   AND  COUNTY.  59 

31.  BUREAU  OF  HEALTH 

1.  Executive 

2.  Accounting  and  reporting 

3.  Medical  inspection 

4.  Child  welfare  work — child  hygiene 

5.  Bacteriological  and  chemical  analysis— laboratories 

6.  Collection,  tabulation  and  reporting  of  vital  statistics 

7.  Sanitary  inspection 

8.  Pood  inspection 

9.  Isolation,  care  and  treatment  of  contagious  disease  eases — hospital 

10.  Tenement  house  inspection 

11.  Enforcing  quarantine  regulations — health  officer 

32.  BUREAU  OF  CHARITIES 

1.  Excutive  direction,  including  superintendent's  office 

2.  Accounting  and  reporting 

3.  General  operation,  including  buildings,  grounds,  heat,  light,  power  and  officers' 

kitchen  and  dining  room 

4.  Laundry  service  . 

5.  Purchase  and  distribution  of  stores 

6.  Manufacturing  department 

7.  Transportation  service 

8.  Care  of  sick  (including  outdoor  relief) 

9.  Care  of  indigent  at  Blockley 

10.  Care  of  indigent  at  Holmesburg 

11.  Care  of  indigent  at  Brown's  farm 

12.  Care  of  insane  at  Blockley 

13.  Care  of  insane  at  Byberry 

40.  DEPARTMENT  OF  PUBLIC  WORKS  (DIRECTOR'S  OFFICE) 

1.  Executive 

2.  Preparation  of  comprehensive  plans  for  the  city 

41.  BUREAU  OF  SURVEYS 

1.  Executive 

2.  Accounting  and  reporting 

3.  Recording  and  plotting  property  lines  and  streets ;  custody  of  city  plans 

4.  Surveying  and  engineering  (including  determination  of  property  lines) 

5.  Preparation  of  city  plans 

6.  Construction  and  care  of  sewers  and  inlets 

7.  Construction  and  care  of  bridges 

8.  Testing  of  materials 

9.  Disposal  of  sewage 

10.  Abolishing  grade  crossings  and  other  transportation  improvements,  including  the 
improvement  of  Delaware  avenue 

42  BUREAU  OF  HIGHWAYS 

1.  Executive — administration  and  engineering 

2.  Accounting  and  reporting 

3.  Granting  permits  and  licenses,  including  investigation  of  applications 

4.  Inspection  of  construction,  repairs  and  cleaning  of  streets— division  of  inspection 

5.  Construction  and  care  of  highways — supervision 

6.  Construction  and  care  of  highways — construction  and  maintenance 

7.  Cleaning  and  sprinkling  of  streets  and  removal  of  all  classes  of  waste 

8.  Care  of  bridges  and  sewers 

Supervision 
Bridge  operation 
Bridge  maintenance 
Sewer  maintenance 

9.  Construction  and  care  of  meadow  banks  and  water  courses 


60  OBOARIZATION   UNITS  AND  FUNCTIONS  OB  A0TIVITIS8  OF  TUB  OITT   ASS  OODNTT. 

43.  BUliEAU  OF  WATER 

1.  Executive — adminiatration  and  engineering 

2.  Accounting  and  reporting 

3.  Collecting  data  on  water  flow — hydrographic  corps 

4.  Levying  water  revenues — registrar 

5.  Superintendence  of  pumping  and  filtration 

6.  Furnishing  water  supply — pumping 

7.  Purification  of  water  supply — filtration 

8.  Care  of  structures — pumping  and  filtration  plants — struetaral  repairs 

9.  Care  of  equipment — pumping  and  filtration  plants— equipment  repairs  and  maint«- 

nance 

10.  Extension,  care  and  inspection  of  distribution  mains  and  attachm«nto 

11.  Meter  installation  and  repairs 

44.  BUREAU  OF  LIGHTING 

1.  Furnishing  street  lights  and  inspection  of  lighting 

45.  BUREAU  OP  GAS 

1.  Inspection  of  gas  meters,  street  lights  and  candle-power  of  gas 

46.  BUREAU  OF  CITY  PROPERTY 

1.  Executive 

2.  Accounting  and  reporting 

3.  Erection,  care  and  custody  of  public  buildings 

4.  Construction,  care  and  custody  of  public  recreation  centers  and  burial  g^'ounds 

50-51.  DEPARTMENT  OP  COUNTY  PRISONS 

50.  Detention  and  isolation  of  criminals — Reed  Street  Prison 

51.  Detention  and  isolation  of  criminals — Convict  Prison — ^Holmesborg 

60. 


61.  PENNSYLVANIA  NAUTICAL  SCHOOL 

1.  Providing  educational  and  practical  training  in  seamanship  and  navigation 

62. 


63. 


64.  ART  JURY 

1.  Passing  upon  works  of  art  and  structural  plans  in  which  the  city  has  interest 

70.  COMMISSIONERS  OF  FAIRMOUNT  PARK 

1.  Executive 

2.  Accounting  and  reporting 

3.  Care  and  improvement  of  parks 

4.  Aquarium 

71. 


72.  BOARD  OP  RECREATION 

1.  Executive 

2.  Care  of  playgrounds  and  direction  of  children's  activitiea 

3.  Care  of  bath  houses 


OEQANIZATION   UNITS  AND   FUNCTIONS   OE  ACTIVITIES   OF   THE   CITY    AND  COUNTY.  61 

80.  DEPARTMENT  OF  WHARVES,  DOCKS  AND  FERRIES 

1.  Executive 

2.  Accounting  and  reporting 

3.  Construction  and  care  of  wharves,  piers  and  bulkheads 

4.  Inspection  and  patrol  of  Delaware  river  front 

5.  Dredging  and  keeping  harbor  channel  open  for  navigation 

85.  DEPARTMENT  OF  CITY  TRANSIT 

1.  Executive 

2.  Accounting  and  reporting 

3.  Providing  improved  transit  facilities 

90.  COMMISSIONERS  OF  THE  SINKING  FUND 

1.  Caring  for  funds  for  the  redemption  of  city  loans  and  guarding  the  loanholders' 

interests 

2.  Administering  the  fire  insurance  fund 


IINDEX 


Account,  capital,  accounts  in  general  ledger  for,  31 

general,  accounts  in  general  ledger  for,  30 
Accounting  system,  general  description  of,   1 
Accounts,  credit  in  general  ledger,  30 
debit  in  general   ledger,   30 
fund,   classification   of,    1 
fund  accounts  in  general  ledger  for,  31 
proprietary,  classification  of.  1 
proprietary  accounts  in  general  ledger  for,  30 
special  and  trust  accounts  in  general  ledger 

for,  31 
standard  for  general  ledger,  30 
Accrual,  register  of  revenues,  19 
Activities  of  the  city  and  county,  56 
Adjustment  of  vouchers  by  city  controller,  advice 

of,   8 
Administration  expense,  defined,  2.5 
Advances   between  accounts,    14 
Advices   of  voucher   adjustments,  use   of,   8 
Appropriations,  conditions  of,  shown  by  fund  bal- 
ance sheet,  54 
monthly   statement,   40 
Approval  of  vouchers  by  officers,  8 
Assembling  sheets  for  monthly  stores  statements, 

18 
Asset  and  liability,  revenue  accrued  and  expense 
incurred  and  fund  system   of  accounting 
and  reporting,  object  attained  by,  1 


Balance  sheet,  capital   account,   50 

fund,  54 

general  account,  48 

special  and  trust  account,  52 

summary  consolidated,  47 
Balance  sheets,  description  and  use  of,  45 
Budget  making,   value  of   expense  ledger   in,   25 
Bureau  of  Correction,  expense  classification  of,  26 


Capital  account,  accounts  in  general  ledger  for,  31 
balance  sheet,  50 

Capital  depreciation,  credit  balance  shows  reserve 
for  future  replacements,  29 
description  and  use  of  ledger  for,  29 

Central  office  of  department  or  bureau,  requisition 
on,  3 

Character  of  expenditure  shown  on  voucher,  8 

Checks  on  accuracy  of  trial  balance,  46 

City  and  county,  organization  units  and  functions 
or  activities  for,  56 

City  Controller,  advice  to  department  or  bureau 
of  voucher  adjustment,  8 
can  promptly  obtain  information  through  ac- 
counting system,  1 


City  Controller  (Co)itinved) 

copy  of  order  attached  to  voucher  transmitted 

to,  4 
copy  of  order,  when  issued,  sent  to,  5 
monthly   reports  required   by,   40 
receives  information  from  vouchers,   8 
register  and  schedule  of  vouchers  sent  to,  15 
schedule  of  all  registers  to  be  sent  to,  9 
schedules  of  invoices  and  payrolls  to  be  sent 
--    Jp,X2 

schedule  of  orders  to  be  transmitted  to,  10 
vouchers   and  schedules  thereoi   to   be   trans- 
mitted to,  15 
Claimant's  ledger,  description  and  use  of,  25 
Classification  of  expenses  by  functions  or  activi- 
ties, 26 
Closing  journal  entries,  outline  for,  34 
Condition  of  funds,  shown  by  summary  reports,  45 
Consignee,  copy  of  order  as  advice  to,  5 

office  copy  of  order  for,  5 
Consolidated    balance    slieet,   47 
Contract  ledger,  description   and  use  of,   24 
Contract  orders,  description  and  use  of,  4 

no  posting  for,  in  appropriation  ledger,  22 
Contract  reserves,  register  and  sched\ile  of  reduc- 
tions in,  16 
Contract,  monthly  statement,  41 
Contract  vouchers,  8 
Contracts,    register   and    schedule    of,   description 

and  use  of,  9 
Control  over  accuracy  of  accounts  and  reports,  2 
Corection,  Bureau  of,  functional  expense,  classifi- 
cation for,  26 
Credit  accounts,  in  general  ledger,  30 
Credit  invoices  or  credit  memoranda,  use  of,  8 

D 

Deljit  accounts  in  general  ledger,  30 
Delivery  slips  in  lieu  of  invoices,  use  of,  6 
Department    or    bureau,    requisition    on    another, 
use  of,  4 
standard  outline  journal  entries  for  an  oper- 
ating, 32 
Departmental  invoices,   description  and  use  of,  6 
Dei)reciation,    capital,    credit    balance    shows    re- 
serve for  future  replacements,  29 
reserve  for,  ledger,  29 
reserve  for,  regi.ster  of,  18 
Depreciation,  monthly  statement  of,  43 
Detail  ledgers,  description  and  use  of,  20 

required  for  accounting  system,  1 
Docmuents,  description  and  use  of,  3 

files  of,  constitute  complete  record  of  transac- 
tions, 2 
files  of,  required  for  accounting  system,  1 
record  in  detail  ledger  account,  2 


63 


64 


nrsBx 


DoninipntM  (('oiitliiurtl) 

re{;iiiter  and   Rohedule  of,  9 
registers   mid   xchedtileH  of,  required   for  ac- 
counting systeni,  1 
registration   nnnierically,  2 
two  entries  from  each,  2 

E 

KncnnibraDceH,    eontiai-t.    from    register    of    con- 
tracts, 9 
contract   in   U|)|>r<i|)ri!ition   ledger,   20 
open  market  order,  from  register  of  orders,  10 
open  marl<et  order,  in  appropriation  ledger,  21 
open  market  order,   n.se  of  requisition   to  set 
up,  10 
Kiitries,   journal,   dciail,    for   opening  new   set   of 
books,  36 
detail,  for  openiling  department  or  bureau,  37 
tiutline,  for  closing  at  end  of  year,  34 
outline,  for  IJepurtment  of  Supplies,  34 
outline,  for  opening  new  Sc-t  of  books,  34 
outline,  for  operating  department  or  bureau, 
32 
Entries,  two  from  each  document,  2 
Equljmient,  inter-departmental  ioToices  for  trans- 
fer of,  7 
monthly  statement  of,  43 
shown  in  property  ledger,  28 
Expenditure  voucher,  description  and  use  of,  8 
Expenditures,  for  repairs,  debited  to  reserve  for 
repairs,  2!» 
for  replacrinents.  debited  to  reserve  for  cap- 
ital depreciation,  29 
in  appropriation  ledger,  21 
Expenw.  averajje  amount  charged  to,  for  repairs, 
29 
elements  to  be  recorded  in  expense  ledger,  25 
ledger,  description   and  use  of,  25 
objects   of,   for  operating  department  or  bu- 
reau, 27 
Expenses,  classification  of.  by  functions  or  activi- 
ties, 26 
definition   of,   23 

incurred,   monthly   statement  of,  42 
Kiiumcial  conditicm.  shown  by  summary  reports,  4.5 


(■'ixed  charges,  definition  of,  2'> 
T'orms  for  snunnary  reports,  46 
I'liiictionnl    clas-ificalion.    for    Bureau    of   Correc- 
tion, 27 
Functional    use    of    pro]>erty,    shown    in    property 

ledger.  28 
I'lmctions  or  activities,  dnsslfication  of  expenses 
by,  2fi 
of  city  and  cnunly.  56 
Tund  balance  sheets,   54 

Fund  ledgers,  detail,  for  appropriations,  20 
Funding  relations  as   shown    in   fund  accounts,   1 
Funds,  accounts  in  general  ledger  for,  31 
in  classlfloation   nf  fund  accounts,   1 


Oeneral  account,  accounts  in  general  kdger  for,  SO 

balance  sheet  and  operation  accounts,  48 
fieneral   fund,  accounts  in  general   ledger  for,  31 
Tieneral  journal,  description  and  use  of,  32 
(K'neral  ledger,    contains    summary    accounts    re- 
•piired  in  accounting  system,  1 
des<-ription  and  use  of,  30 
standard  accounta  for,  30 


Inventory,  of  property,  to  open  property  ledger.  tS 

of  stores,  when  to  take,  28 
Investment   of  the  city,  analysis  of,  for  general 
account,   48 

shown  in  summary  report*,  45 
Inspector,  office  copy  of  order  for,  6 
Inter-departmental   invoices,  use  of,  7 

as  elements  of  expense,  26 
Inter-departmental  sen-iies.  register  and  schednle 

of,  17 
Invoices,  description  and  use  of,  6 
Invoices  and  payrolls,  as  elements  of  expense.  S9 

register  and  schedule  of,   11 
Invoices,  credit,  description  and  use  of,  8 

ilepartmental,    description    and    use    of,    8 

inter-departmental,  use  of,  7 

memorandum,  description  and  use  of,  0 

regularly  rend<'red,  description  and  use  of,  6 

sent  to  department  of  supplies,  register  and 
schedules  of,   14 

"supplies."   u.se  of,   6 


Journal  entries,  detail  monthly,  37 

detail   for  o|)ening  new  set  of  books,  36 

for  vou<-her  adjustments,   23 

from  register  of  contracts,  10 

from   rcL'i'it.T  <.f   int>-r.,|o|>nrtmental  serrices, 
17 

from  rejiister  of   invoices  and  payrolls.   13 

from  register  of  invoices  sent  to  department 
of  supplies,  14 

from  register  of  properties  transferred.  17 

from  register  of  orders,  11 

from    register   of   re<liictions    in   contract    r^ 
serves,  17 

from  register  of  reserve  for  repairs  and  capi- 
tal  depreciation,    19 

from  register  of  revenue  accrual,  19 
I  from   register  of  vouchers  sent  to  city  con- 

i  t  roller,  16 

outline,  for  department  of  supplies,  34 

outline,  for  opening  new  set  of  hooka.  S4 

outline,  for  operating  department  or  bureau. 
32 

printed,  how  «se<l.  32 

"safety"  and  "supplies"  used  In,  to  illustrate,  9 
.lournal  entry,  from  monthly  report  of  stores  is- 


INDEX 


••05 


Journal  entry  (Continued) 

from   monthly   report   of   stores    returned   to 
storehouse,  18 
Jonrnal.  general,   description   and   use   of,  32 

L 

Land,  sho^n  in  property  ledger,  28 

Ledger,  appropriation,  description  and  nse  of,  19 
claimants,'  description  and  use  of,  25 
contract,   description  and  use   of,   24 
expense  description  and  use  of,  25 
general,  description  and  use  of,  30 
general,   standard  accounts  for,  30 
property,  description  and  use   of,  28 
reserve  for  repairs  and  capital  depreciation,  29 
revenue,  description  and  use  of,  29 
stores,  description  and  use  of,  28 
work  in  progress,  description  and  use  of,  28 

Ledger-s,  detail,  descriptions  and  nse  of,  20 

Loan  funds,  accounts  in  general  ledger  for,  31 

M 

Maintenance  expense  defined,  25 
Materials,    inter-depai-tmental    invoices    used    for 
transfer  of,  7 

transferred,  register  and  schedule  of,  17 
Memoranda,  credit,  description  and  use  of,  8 

fund  accounts,  kept  by  departments  for  de- 
partment of  supplies  appropriation  ac- 
counts, 10 

invoices,  description  and  use  of,   6 
^Monthly,   detail  journal   entries,   37 

outline  journal  entries  for  department  of  sup- 
plies, 34 

outline  journal   entries   for  opei-ating  depart-, 
nient  or  bureau,  32 

reports  to  city  controller,  description  and  use 
of,   40 

statement  of  appropriations,  40 

statement  of  contracts,  41 

statement  of  depreciation,  43 

statement  of  expenses  incurred,  42 

statement  of  open  market  orders,  41 

statement  of  properties  and  equipment,  43 

statement  of  revenue,  44 

statement  of  stores,  42 

statement  of  work  in  progress,  43 

O 

Object  of  expenditure,  shown  in  voucher,  8 
Objects  of  expense,  of  operating  bureau,  27 
OfRce,  copy  of  order  retained  in  issuing,  5 
Opening  new  set  of  books,  detail  journal  entries 
for,   36 

outline  journal  entries  for,  34 
Operating  bureau,  standard  accounts  for,  30 

outline  general  journal  entries  for,   32 
Operating  results,  shown  by  summary  reports,  45 
Operation  accounts,  for  general  account,  48 

use  in  summary  reports,  45 
Operation  expense,  definition  of.  25 
Operation  results,  shown  in  accounts,  1 
Order,  open  market  voucher,  8 


Orders,  contract,   description   and   use  of,   4 

no  posting  for,  in  appropriation  ledger,  22 

register  and  schedule  of,   10 
Orders,  open  market,  description  and  use  of,  4 

liquidated,    invoices    to    department    of    sup- 
plies,  14 

liquidated,  vouchers  sent  to  city  controller,  16 

monthly  statement  of,  41 

i-egister  and  schedule  of,  10 
Organization  units  for  city  and  coimty,  list  of,  56 
Other  expenses,  definition  of,  25 
Outlays,  capital,    for   property,    28 

P 

Payroll   and  miscellaneous   voucher,   8 
Postings  to  geueral  ledger  from  journal,  30 
Printed   journal   entries,    use   of,   32 
Properties     and    equipment,     monthly    statement 
of,  43 

transferred,  register  and  sciiedule  of,  17 
Property,   disposition  of,  credits  in  property  led- 
ger,  28 

functional   use  of,   28 

inventory  to   open   property  ledger,  28 

ledger,  description  and  use  of,  28 
Proprietary  accounts  in  general  ledger,  30 
Proprietary  relations  as  shown  in  accounts,  1 
Public  Safety,  Department  of.  Bureau  of  Correc- 
tion 

accounts  used  as  illustration,  30 

functions  used  as  illustration,  26 

E 

Reductions     in     contract     reserves,    register     and 

schedule  of,   16 
Kegister  and   schedule  of  documents,   description 
and  use  of,  9 
of  documents,  required  for  accounting  system, 

1 
of  contracts,  description  and  xise  of,  9 
of  invoices  and  payrolls,  description  and  use 

of,   11 
of  invoices  sent  to  department  of  supplies,  14 
(of  orders,  description  and  use  of,  10 
of  property  transferred,  17 
of  rediictions  in  contract  reserves,  use  of,  16 
of  reserves  for  repairs   and  capital   deprecia- 
tion, 18 
of  revenue  accrual,  use  of,   19 
of  vouchers  sent  to  city  controller,  use  of,  15 
Regularly  rendered   invoices,  use   of,   6 
Repairs,  average  amount  charged  to  expense,  29 
expenditures,  debited  to  reserve  for  repairs,  29 
register  of  reserves  for,  18 
reserve  for,  as  an  element  of  expense,  26 
reserve  for,  ledger,  use  of,  29 
Replacements,  expenditures  debited  to  reserve  for 
capital  depreciation,  29 
reserve   for  future,   shown  by  credit  balance 
in  reserve  for  capital  depreciation,  29 
Reports,  from  detail  ledgers  required  in  account- 
ing system,  1 


UeportN  (Voiilliiucd) 

monthly  to  city  controller,  40 

of  stores  Iwined  from  atorehounen,  18 

of  stored  returned  to  ■torehouMB,  18 

summary,  description  and  use  of,  45 

summary,  forms  for,  46 

summary,  required  in  accountings  system,  1 

Requisition  on  central  office  of  department  or  bu- 
reau, use  of,  3 
on  another  department  or  bureau,  use  of,  4 
on  department  of  supplies,  use  of,  4 
on  storekeeper,  use  of,  3 

Iteserve  for  repairs  as  an  element  of  expense,  28 
for  repairs  and  capital  depreciation,  ledger,  29 
for  repairs  and  capital  depreciation,  register 
and  schedule  of,  18 

Kesponsibility   located   by    permanent    record    of 
transaction,  2 

Itevenue  aocrnnl,  rctfister  of,  19 

ledger,  description  and  use  of,  29 
monthly  statement  of,  44 

S 

"Safety,"  used  in  journal  entries  to  illustrate,  9 
Schedule  of,  contracts,  description  and  use  of,  9 

documents,  description  and  use  of,  0 

invoices  and  payrolls,  11 

invoices  sent  to  department  of  supplies,  14 

orders,  description  and  use  of,   10 

properties,  transferred,   17 

reductions   iu   contract  reserves,    10 

vouchers  sent  to  city  controller,  15 
Schedules   of   balances   and   totals    (monthly   re- 
ports), 40 
Services,   inter-departmental,   as   elements  of   ex- 
pense, 26 

registers  and   schetlules  of,  17 
Special  and  trust  accounts,  accounts  for,  31 

balance   sheet,   52 
Special  anil  trust  funds,  accounts  for,  31 
Statement,   appropriation,  40 

contract,   41 

depreciation,  43 

expenses  incurred,   42 

open   market  order,  41 

properties  and  equipment,  43 

revenue,   44 

stores,  42 

work  in  progress,  43 
Statements,  summary  from  general  ledger,  30 
Storehouse,   report  of  stores  issued  from,   18 

report  of  stores  returned  to,  18 
Storekeeper,  requisition  on,  use  of,  3 
Stores  issued,  as  elements  of  expense,  26 

issued  from  storehoTiscs,  report  of,  18 

ledger,  description  and  use  of,  28 

returned  to  storehouses,  report  of,  18 

statement  of,  43 
Strnct\ires,  shown  in  property  ledger,  28 
Supplies,    ilepartuient    of,    accounts   deal    largely 
with  appropriations,  1 


Supplies,  deimrtnient  of  (Couttnm^) 

procedure   in   ref^i''*'"^   "^    Inrofeaa   and   pttjr- 
rolls,  12 

procedure  in  regisu-r  and  schedule  of  orders, 
10 

procedure  in  register  and  schedule  of  vouchers 
sent  to  city  controller,  IS 

receives  from  city  controller  duplicftte  of  ad- 
rice  of  voucher  adjustment,  8 

register  and  schedule  of  invoices  sent  to,  14 

requires  two  copies  of  register  and  schedule,  9 

requisition  on,  use  of,  4 

standard     outline     monthly    jotimal     entries 
for,  34 

to   send  copy  of  register  of  rouchem  to  de- 
partment. 15 

voucher  adjustments  in  appropriation  ledger 
of,  23 

will   register  and  schedule  all  orders  Issued 
for  departments,  10 
"Supplies"   invoices,  description  and  use  of.  6 

to  be  sent  to  department  of  supplies,  14 
"Supplies."  used  in  journal  entries  to  illustrate,  9 
Summary  of  transactions  secured  by  general  led- 
ger accounts,  2 
Summary   reports,  description  and  use  of,  45 

forms  for,  46 

T 
Trial  balance,  checks  on  the  accuracy  of,  4< 

gives   totals  which  ]  rove  accuracy,  S 
used  in  preparing  summary  statements,  45 
Trust  accounts,  accounts  in  general  ledger  for,  SI 

Tri'St  f'lnds.  ne.'ounts  for,  31 

U 

Unencumbered  lialances  shown  in  appropriation 
ledger,   22 

Unexpended  balances  shown  in  appropriation  led- 
ger. 22 

Uniformity   of   treatment  to   similar   accounts,  3 


Vendor,   ncknowledgment   of   receipt  of   order,  S 
copy  of  order  retained  by,  5 

Voiu'her  adjustment,  advice  of,  8 

procedure  in  operating  department,  S3 
taken  into  appropriation  ledger,  SS 

Vouchers,  certification  of,  by  ofBcers,  8 
classiflcation  of,  8 

expenditure,  description  and  xise  of,  8 
sent  to  city  controller,  register  and  schedule 

of,  15 
to  give  information  to  city  controller,  8 
to  show  character  ol  expenditure,  8 
to  show  object  of  expenditure,  8 

^  W 

Work  in  p^ogr€^»».  distributed  as  an  element   of 
expense,  26 
le<1ger,  description  and  use  of,  St 
statement  of.  4S 


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